Morepen Labs begins FY 2018-19 with sound performance in first quarter

Company reports 93 percent rise in its consolidated net profit and 26 percent rise in its consolidated net sales revenue in Q1 of FY 2018-19

Highlights Q1 FY 2018-19 (Consolidated)

• Net Sales Revenue up by 26 percent at INR 161.81 crore backed by improved sales revenue from Home Diagnostics, Formulations and OTC Businesses.
• Domestic sales up by 71 percent at INR 108.20 crore. EBIDTA rises by 10.4 percent at INR 12.25 crore.
• Net Profit before tax up by 108 percent at INR 2.65 crore.
• Net Profit after tax up by 93 percent at INR 2.46 crore.
• Montelukast records highest growth amongst bulk drugs in the quarter @ 55 percent.
• Interest cost falls further by 67 percent from 1.33 crore in Q1 FY 2017-18 to INR 44 lakhs only in Q1 FY 2018-19.
• Company gets USFDA approval for its two plants at Baddi and Masulkhana in Himachal Pradesh for bulk drugs Atorvastatin Calcium and Montelukast Sodium.

Morepen Laboratories has reported a 93 percent rise in its consolidated net profit at INR 2.46 crore, on consolidated net sales revenue of INR 161.81 crore in the first quarter (Q1) of FY 2018-19. The consolidated net sales revenue has grown up by 26 percent in Q1 FY 2018-19 from INR 128.41 crore in Q1 FY 2017-18 backed by improved sales revenue from home diagnostics, formulations and OTC businesses. The company’s consolidated net profit before tax in Q1 FY 2018-19 grew up by 108 percent at INR 2.65 crore from INR 1.27 crore in the corresponding quarter of the previous fiscal.

The company’s expanding domestic reach assisted in achieving a higher topline in Q1 FY 2018-19. Domestic sales registered a growth of 71 percent in Q1 at INR 108.20 crore. EBIDTA in Q1 FY 2018-19 increased by 10.4 percent at INR 12.25 crore, Interest Cost fell by 67 percent at INR 44 Lakhs only and cash profit increased by 21 percent at INR 11.81 crore. With only one lender remaining to be paid, the company aims to become a zero debt company in the second quarter of FY 2018-19.

This was disclosed by Sushil Suri, Chairman and Managing Director, Morepen Laboratories, after the Q1 (FY18-19) results board meeting here on Monday. “Having serviced its debt obligation successfully, the company now aims to utilise its available resources to invest in R&D infrastructure, capacity enhancement & process improvements to fuel the future growth,” Suri said.

Synopsis of Q1 FY 2018-19-Performance (Consolidated):

INR in crores

The entire ‘Dr. Morepen’ brand portfolio did well during Q1 FY 2018-19 and recorded sales revenue of INR 83.54 crore as against revenue of INR 48.53 crore in the corresponding quarter of the previous fiscal, registering a growth of 72 percent.

Sales from formulations business in Q1 FY 2018-19 went up by 101 percent and that from brand sharing by 102 percent. Total sales revenue from both the businesses jumped significantly to INR 36.34 crore in Q1 FY 2018-19 as compared to INR 18.06 crore in the corresponding quarter of the previous fiscal.