Morepen Labs’ Net Profit Rises by 153 Per cent Led by Strong API Business in Q1’FY 2020-21

Performance at a Glance (Rs. in Crores)

Particulars	Q1’FY 2020-21	Q1’FY 2019-20	% Growth
Net Revenue	258.97	203.26	27%
EBIDTA	27.90	19.61	42%
Net Profit After Tax (PAT)	19.37	7.66	153%

• Net Profit After Tax for Q1’FY 2020-21 is sharply up by 153 per cent at Rs. 19.37 crore.
• Net Revenue for Q1’FY 2020-21 stood at Rs. 258.97 crore as against Rs. 203.26 crore for Q1’FY 2019-20, registering a rise of 27 per cent. This growth was mainly on account of a consistent growth in sales of Bulk Drugs (APIs), Diagnostic Devices and OTC products during the quarter.
• API Sales Revenue remained the lead driver of the business contributing 64% to the top line and grew by 44 per cent at Rs. 162.06 crore during Q1’FY 2020-21.
• EBIDTA and Cash profit for Q1’FY 2020-21 also went up by 42 per cent and 44 per cent at Rs. 27.90 crore and Rs. 27.61 crore, respectively.
• Profit before Tax for Q1’FY 2020-21 was up by 155 per cent at Rs. 19.56 crore.
• Expansion Plan: Company’s Board has approved a mega expansion plan involving an outlay of Rs. 178 crore. This would see fresh addition of APIs manufacturing capacities by about 2000 MT p.a. and generate additional employment for about 700 people. New capacity additions will cover over 40 fresh and existing bulk drugs and are expected to commence commercial production over the next three years.
• Export Sales Revenue for Q1’FY 2020-21 jumped up by 47 per cent at Rs. 117.32 crore. Domestic Sales grew by 15 per cent at Rs. 141.65 crores.
• Home Diagnostics Sales Revenue grew by 16 per cent at Rs. 46.56 crore. Thermometers sales (including non-contact infrared thermometers) increased by around twenty times and that of Blood Pressure Monitors by 57 per cent during Q1’FY 2020-21. The company increased its manufacturing capacity of Oximeters as their sales increased sharply during the quarter. This apart, Morepen also launched Oxygen Concentrators especially for COVID patients’ use at home
• OTC Business Sales Revenue grew by 53 per cent at Rs. 21.69 crore on account of a wide range of products launched by the company during the quarter to fight COVID-19 pandemic.

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 30^th, 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.

Morepen Laboratories’ Manufacturing Plant At Baddi, Himachal Pradesh

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 Mr. 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.

Synopsis of Quarterly Performance (Consolidated)                                             (Rs. in Crores)

Particulars	First Quarter (Q1)			Annual
	Q1’FY 2020-21	Q1’FY 2019-20	% Growth	FY 2019-20
Net Revenue	258.97	203.26	27%	862.55
Expenditure	231.07	183.65	26%	784.55
EBIDTA	27.90	19.61	42%	78.00
Interest	0.29	0.43	(33%)	1.98
Cash Surplus	27.61	19.18	44%	76.02
Profit Before Tax	19.56	7.68	155%	39.11
Net Profit After Tax (PAT)	19.37	7.66	153%	33.58

 

“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,” Mr. 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.

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