Morepen Labs clocks double digit growth in its sales and net profit in FY 2019-20

▴ morepen-labs-achieved-double-digit-growth-overcomes-difficult-business-challenges
Merepen Lab has achieved good growth and smoothly sailed through the difficult business challenges posed by the novel coronavirus globally

Morepen Laboratories Ltd. has reported a 16.43 percent rise in its Net Profit (Consolidated) at Rs. 33.58 crores. Net Consolidated Revenue during the year rose by 11.7 percent at Rs. 862.55 crores. The company’s net profit was Rs. 28.84 crore on net revenue of Rs. 772.21 crore in the previous fiscal.

Q4 FY 2019-20 numbers remain stable despite lockdown in the last two weeks of the financial year

Company expands its portfolio with a wide range of new and promising products in personal hygiene and protection segments

Highlights (FY 2019-20 and Q4 FY 2019-20)

Net Profit After Tax (Consolidated) for FY 2019-20 was up by 16.43 percent at Rs. 33.58 crores and that for Q4 FY 2019-20 by 5.1 percent at Rs. 11.02 crore.

Net Revenue (Consolidated) for FY 2019-20 stood at Rs. 862.55 crores as against Rs. 772.21 crore in FY 2018-19, registering a rise of 11.7 percent. This growth was mainly on account of consistent growth in sales of Bulk Drugs (APIs), Diagnostic Devices, and OTC products during the financial year.

Net Revenue (Consolidated) for Q4 FY 2019-20 was marginally down by 5.2 percent at Rs. 208.39 crore.

EBIDTA and Cash profit (Consolidated) for FY 2019-20 also went up by around 9.6 percent and 10 percent at Rs. 78 crore and Rs. 76.02 crore, respectively.

Net Profit before Tax (Consolidated) for FY 2019-20 was up by 34.04 percent at Rs. 39.11 crores and that for Q4 FY 2019-20 by 6.17 percent at Rs. 11.36 crore.

Export Sales Revenue for FY 2019-20 increased by 10 percent at Rs. 343.24 crore due to high impetus on API business. In the export market, Rosuvastatin exports have shown good growth of 30 percent.

Domestic Sales Revenue for FY 2019-20 went up by 11.75 percent at Rs. 496.36 crores. In the domestic market, the best performance came from Atorvastatin with 94 percent growth.

API Sales Revenue for FY 2019-20 grew by 14.74 percent at Rs. 473.95 crores.

Home Diagnostics Sales Revenue grew by 20.46 percent at Rs. 168.35 crores. Blood Glucose Monitors’sales jump up by 29 percent and Nebulisers’ by 44 percent.

Branded Formulation Sales Revenue jumped by 18.62 percent for FY 2019-20 at Rs. 40.64 crores.

OTC Business Sales Revenue showed good growth of 18.84 percent at Rs. 64.63 crores with Grooming business recording a growth of 58 percent.

The Company launched a wide range of non-contact infrared thermometers, oximeters, hand sanitizers, hand rubs, hand wash, anti-bacterial spray, anti-bacterial soap, disinfectant solutions, face masks, gloves, Vitamin-C gummies for kids, Multivitamins, Chyawanprash and curcumin tablets to fight COVID-19 at ground level.

The Company also got ISO-13485 Certification for its Medical Devices Manufacturing Facility at Baddi (H.P.) from BSI (British Standards Institution, U.K.).

The Company has recently got a license to manufacture Hydroxychloroquine (HCQ). The drug is prescribed for treatment of COVID-19 patients in India and abroad, is currently undergoing commercial trials.

The EBIDTA (Consolidated) for FY 2019-20 rose by 9.6 percent at Rs. 78 crores and the Cash Profit (Consolidated) by 10 percent at Rs. 76.02 crores. Consolidated Profit before Tax (PBT) recorded extraordinary growth by 34 percent at Rs. 39.11 crores, up from Rs. 29.18 crore in the previous fiscal.

Domestic Sales Revenue in FY 2019-20 was up by 11.75 percent at Rs. 496.36 crore and Export Sales Revenue up by 10 percent at Rs. 343.24 crores. In the domestic market, the best performance came from Atorvastatin with 94 percent growth in FY 2019-20. In the export market, Rosuvastatin registered a good growth of 30 percent and Loratadine 18 percent in FY 2019-20. API Sales Revenue during the year grew by 14.74 percent at Rs. 473.95 crores with an impressive growth of 28 percent in Domestic and 10 percent in Exports. Home Diagnostics Sales Revenue grew by 20.46 percent at Rs. 168.35 crores with Blood Glucose Monitors’ sales up by 29 percent and Nebulisers’ by 44 percent. OTC Sales Revenue grew by 18.84 percent at Rs. 64.63 crores with Grooming Business showing extraordinary growth of 58 percent. Branded Formulation Sales Revenue grew by 18.62 percent at Rs. 40.64 crores. Generic Formulation was down by 18.49 percent at Rs. 96.93 crores in FY 2019-20.

The bulk drugs (API) segment contributed around 56 percent to the company’s total sales turnover in FY19-20. Within the API segment, Finished APIs have registered a growth of 14 percent at Rs. 414.39 Crores, Intermediates’ grew by 24 percent at Rs. 31.50 Crores whereas New Molecules’ have added Rs. 28.06 Crores to the company’s top line.

The company’s consolidated Net Revenue in Q-4 FY 2019-20 was marginally down by 5.2 percent at Rs. 208.39 crore due to the Covid-19 lockdown effect in the last two weeks of March 2020. Consolidated Net Profit in Q4 FY 2019-20 was up by 5.1 percent at Rs. 11.02 crore. Consolidated Profit Before Tax (PBT) recorded growth of 6.2 percent at Rs. 11.36 crore, up from Rs. 10.70 crore in the corresponding quarter of previous fiscal.

This was disclosed by Mr. Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., after the Q4 and annual FY 2019-20 results’ board meeting here on Monday. “The Company has achieved good growth and smoothly sailed through the difficult business challenges posed by the Novel Coronavirus Disease globally. Impact of COVID-19 and the subsequent lockdown in the entire country has been mitigated by the company to a large extent by its timely launch of various new products in the personal hygiene and protection segment.”

"The company’s OTC products division has launched a wide range of personal hygiene and COVID protection products like non-contact infrared thermometers, oximeters, hand sanitizers (both in gel and rub form), anti-bacterial hand wash, anti-bacterial spray, anti-bacterial soap, disinfectant solutions, N-95 and 3-ply face masks, Nitrile gloves, Vitamin-C gummies for kids, multivitamins, chyawanprash, and curcumin tablets to fight COVID-19 at ground level and empower its customers to stay safe. Morepen has launched its hand sanitizers as per WHO formula in various pack sizes starting from 100 ML and goes up to 5 Litres bulk pack. Company’s anti-bacterial disinfectant solutions and sprays are aimed at washing, cleaning, and disinfecting any type of small and large surfaces," Mr. Suri stated.

The Board recently has also approved the incorporation of two wholly-owned subsidiaries to focus on Finished Dosages business and its new initiatives of online business in the Health & Beauty Segment. In the last Board meeting held on 14.02.20, the Board had approved the formation of a similar wholly owned subsidiary for its Diagnostic business also.

The Consolidated domestic Sales Revenue in Q4 FY19-20 was up by 3.43 percent at Rs. 122.55 crore and Export Sales Revenue was down by 16.35 percent at Rs. 80.64 crores. API business exports got a hit in the last two weeks of March due to the COVID-19 lockdown situation which was compensated by excellent sales performance in April and May 2020. API business was down by 9.79 percent in Q4 FY 19-20 compared to the corresponding quarter of the last fiscal. Home diagnostics business was not impacted by lockdown in March and registered exemplary growth of 43.79 percent with Blood Glucose Monitors’ sale recording a jump of 78 percent in this tough situation in Q-4 FY 19-20. The Company launched Non-Contact Infrared Thermometers in April 2020. The branded formulation also registered a growth of 9.48 percent in Q-4 FY 19-20 vis-à-vis corresponding quarter of the previous fiscal. OTC Business also launched Burnol Antiseptic Solution and Antiseptic Spray, Anti-bacterial solutions and sprays, This segment achieved extraordinary growth of 30.97 percent in Q4 FY 19-20 with Branded OTC recording a whooping growth of 72 percent. Generics formulation witnessed a major shortfall of 40.24 percent in Q4 FY 19-20.

Tags : #MorepenLab #SushilSuri #OTCProducts #COVIDProtectionProducts

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