Company registered a 60 per cent increase in net profits for the first quarter
Morepen Laboratories has reported a 60 per cent rise in its net profit for the first quarter (Q1) of FY 2016-17. The net profit increased from Rs 2.50 crores in the Q1 of the previous financial year to Rs 4.01 crores in Q1 of FY 2016-17. The company ascribes its fifth consecutive quarterly growth in financial numbers to management’s focus on API markets, both domestic and international, besides better efficiency in all business segments.
This was disclosed by Sushil Suri, Chairman and Managing Director, Morepen Laboratories after the company’s board meeting, which discussed and took on record the financial results of the company for the first quarter of FY 2016-17. “Having witnessed a remarkable turnaround in the previous fiscal, the company is now all set to achieve newer milestones by launch of new products and greater investments in R&D in the years ahead,” he said.
The net sales revenue increased from Rs 99.28 crores to Rs 116.72 crores, registering a growth of 18 per cent in Q1 FY 2016-17 compared to the corresponding quarter in previous fiscal. The net income from operations rose from Rs 103.56 crores to Rs 118.44 crores, registering a growth of 14 per cent during the same period. EBIDTA in Q1 FY 2016-17 stood at Rs 14.38 crores, rising by 5.6 per cent compared to Rs 13.62 crores in the corresponding quarter of the previous fiscal.
During the quarter under consideration, exports grew by 15 per cent and the net domestic sales by 20 per cent. While the exports turnover increased from Rs 45.88 crores to Rs 52.81 crores, the net domestic sales went up from Rs 53.40 crores to Rs 63.91 crores.
The bulk drugs (API) business continues to be the top contributor to the company’s topline, accounting for over 65 per cent in the total turnover for the quarter. Reportedly, within the API business, the sales of anti-asthmatic bulk drug Montelukast alone registered a growth of 64 per cent in Q1 at Rs 21.36 crores whereas Rosuvastatin, a statin drug, grew up by 111 per cent. The total bulk drugs sales stood at Rs 75.25 crores in Q1 FY2016-17 compared to Rs 60.39 crores in the Q1 of FY 2015-16, registering a growth of 25 per cent.
In the home diagnostic segment, the company registered a growth of 42 per cent in the sales of glucometers at Rs 10.69 crores and 62 per cent in BP monitors at Rs 3.08 crores in the Q1 FY 2016-17. The gross revenue from this business rose by 25 per cent at Rs 18.25 crores in Q1 FY 2016-17 compared to Rs 14.63 crores in Q1 FY 2015-16.
The company is targeting to touch a base of one million installations of glucometers this year and sell three to five million strips every month.
In the OTC segment, Dr Morepen’s Burnol and Lemolate registered a growth of 80 per cent and 57 per cent respectively in their first quarterly sales in FY 2016-17. Total sales from OTC products went up by 61 per cent at Rs 11.92 crores in Q1 FY 2016-17 vis-à-vis Rs 7.40 crores in Q1 FY 2015-16.
Dr Morepen brand has expanded its footprints in the field of delivery of home diagnostic equipment, over the counter (OTC) and grooming products besides the pharma products. During the quarter under consideration, the Dr Morepen brand portfolio has recorded sales revenue of Rs 50.38 crores against revenue of Rs 40.32 crores in the corresponding quarter of the previous fiscal, recording a growth of 25 per cent.