Morepen Labs strengthens position in bulk drugs market

Morepen Laboratories Ltd. has reported a 60 percent rise in its net profit for the first quarter (Q1) of FY 2016-17. The net profit increased from Rs. 2.50 crore in the Q1 of the previous financial year to Rs. 4.01 crore 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 Ltd. 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 research and development in the years ahead," he said.

The net sales revenue increased from Rs. 99.28 crore to Rs. 116.72 crore, registering a growth of 18 percent in Q1 FY 2016-17 compared to the corresponding quarter in previous fiscal. The net income from operations rose from Rs. 103.56 crore to Rs. 118.44 crore, registering a growth of 14 per cent during the same period.

EBIDTA in Q1 FY 2016-17 stood at Rs. 14.38 crore, rising by 5.6 percent compared to Rs. 13.62 crore in the corresponding quarter of the previous fiscal.

During the quarter under consideration, exports grew by 15 percent and the net domestic sales by 20 percent. While the exports turnover increased from Rs. 45.88 crore to Rs. 52.81 crore, the net domestic sales went up from Rs. 53.40 crore to Rs. 63.91 crore.

The bulk drugs (API) business continues to be the top contributor to the company's top-line, accounting for over 65 percent in the total turnover for the quarter. Within the API business, the sales of anti-asthmatic bulk drug Montelukast alone registered a growth of 64 percent in Q1 at Rs. 21.36 crore whereas Rosuvastatin, a statin drug, grew up by 111 percent.

The total bulk drugs sales stood at Rs. 75.25 crore in Q1 FY2016-17 compared to Rs. 60.39 crore in the Q1 of FY 2015-16, registering a growth of 25 percent.

The company cemented its leadership position in Home Diagnostic segment by registering a growth of 42 per cent in the sales of Glucometers at Rs. 10.69 crore and 62 per cent in BP Monitors at Rs. 3.08 crore in the Q1 FY 2016-17.

The gross revenue from this business rose by 25 per cent at Rs. 18.25 crore in Q1 FY 2016-17 compared to Rs. 14.63 crore in Q1 FY 2015-16. Looking at increasing incidence of diabetic cases in India, this segment offers great opportunity for growth in the coming years.

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.

Dr. Morepen's Burnol and Lemolate excelled in the OTC segment by registering a growth of 80 per cent and 57 percent respectively in their first quarterly sales in FY 2016-17. Total sales from OTC products went up by 61 percent at Rs. 11.92 crore in Q1 FY 2016-17 vis-a-vis Rs. 7.40 crore in Q1 FY 2015-16.

Carrying forward its motto of delivering wellness solutions, Dr. Morepen brand has expanded its footprints in the field of delivery of Home Diagnostic Equipments, Over the Counter (OTC) and Grooming products besides the pharmaceutical products.

During the quarter under consideration, the Dr. Morepen brand portfolio has recorded sales revenue of Rs. 50.38 crore against revenue of Rs. 40.32 crore in the corresponding quarter of the previous fiscal, recording a growth of 25 percent.