Morepen Labs’ Net Profit Rises by 153 Percent Led by Strong API Business

NEW DELHI:
Morepen Laboratories Ltd., a leading API player in regulated markets, has reported a sharp upsurge of 153 per cent in its Net Profit (Consolidated) at Rs. 19.37 crore in the first Quarter (Q1) of FY 2020-21 ended June 30th, 2020. Net Revenue (Consolidated) during the quarter rose by 27 per cent at Rs. 258.97 crore. The company’s net profit was Rs. 7.66 crore on a net revenue of Rs. 203.26 crore in the corresponding quarter of previous fiscal.

EBIDTA for Q1’FY 2020-21 rose by 42 per cent at Rs. 27.90 crore and Cash Profit by 44 per cent at Rs. 27.61 crore. Profit before Tax (PBT) for Q1’FY 2020-21 stood at Rs. 19.56 crore, recording an extraordinary growth of 155 per cent from Rs. 7.68 crore PBT earned in the corresponding quarter of the previous fiscal.

API business maintained its lead contributing 64 per cent to the company’s topline in Q1’FY 2020-21. API Sales Revenue during the quarter grew by 44 per cent at Rs. 162.06 crore. Within the API segment, Finished APIs registered a growth of 43 per cent at Rs. 142.88 Crores and API Intermediates’ grew by 91 per cent at Rs. 11.67 Crores. New API Molecules’ added Rs. 7.51 Crores to the company’s top line.

This was disclosed by Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., after the Q1’FY 2020-21 results’ board meeting here on Monday. “API business of the company is doing exceedingly well and is gaining greater traction in the international markets, thanks to highest standards of quality maintained by the company for latest innovative products. Encouraged by the unfulfilled demand of existing products and keeping in mind the strong pipeline of APIs under development which are going generic over the next 5-6 years, the company has envisioned a mega expansion plan for existing and new products at its Baddi plant.”

Company’s Board has approved a mega expansion plan involving an outlay of Rs. 178 crore. The expansion plan has already been cleared by Himachal State Government under single window clearance scheme. It would add 2000 MT p.a. of APIs manufacturing capacity in addition to 3000 MT p.a. capacity already installed, and also generate additional employment for about 700 people. The company is awaiting environmental clearance by State Level Approval Committee for this expansion project. Additional capacities will facilitate production of over 40 new and existing bulk drugs covering various therapeutic categories including anti-diabetic, anti-hypertensives, anti-allergic, anti-asthmatic, cholesterol reducers, anti-viral, anti-coagulants, anti-psychotic and anti-depressants. The expanded capacity is likely to commence commercial production over the next three years. The company proposes to fund the expansion primarily through internal accruals.

“Expansion plan of API manufacturing facility is well in sync with present global trend where all major companies are shifting their outsourcing from China. As a result of this, Indian API industry is rightly placed to become the global outsourcing hub for foreign pharmaceutical giants, with best international quality standards supported by complete documentation and FDA Approvals in place. Govt. of India has also come forward in a very aggressive manner to support this mission and make India self-reliant in APIs,” Suri added.

API Exports recorded an impressive growth of 47 per cent at Rs. 117.32 crore in Q1’FY 2020-21. Business from European markets soared by 127 per cent and that from APAC region by 45 per cent in Q1’FY 2020-21. Offtake from the U.S. market remained slow while that from other semi-regulated markets grew by 38 per cent during the quarter. Domestic API business recorded a growth of 36 per cent at Rs. 44.92 crore with a remarkable improvement of 74 per cent in the sales of Loratadine.

Home Diagnostics Sales Revenue grew by 16 per cent in Q1’FY 2020-21 at Rs. 46.56 crore with Thermometers’ sales growing around twenty folds (mainly due to non-contact infrared thermometers) and Blood Pressure Monitors by 57 per cent. The company has now launched Oxygen Concentrators especially for COVID patients’ use at home. OTC Sales Revenue grew by 53 per cent at Rs. 21.69 crore on account of more than 20 different products launched by the company during the quarter to fight COVID-19 pandemic.