Morepen posts 21 pc rise in Q3 net profit at Rs 10.8 crore

Pharmaceutical major Morepen Laboratories on Monday reported 21 per cent rise in its consolidated net profit after tax during the third quarter of current financial year (Q3 FY20) at Rs 10.8 crore as compared to Rs 8.9 crore in the corresponding quarter of previous fiscal.

Net sales revenue stood at Rs 227 crore, registering a growth of 8.9 per cent as compared to Rs 208.5 crore. Total revenue in Q3 FY20 rose to Rs 234.6 crore from Rs 214.6 crore, marking a jump of 9.4 per cent.

Earnings before interest, tax, depreciation and amortisation (EBIDTA) were up by 3.3 per cent in Q3 FY20 at Rs 19.9 crore (Rs 19.3 crore) and cash profit during the same period was up by around 2.8 per cent at Rs 19.4 crore (Rs 18.8 crore).

The net profit before tax posted a growth of 19.7 per cent at Rs 10.8 crore compared to Rs 9 crore in Q3 of previous fiscal.

"Our investment in the manufacturing of medical devices in India has already started showing results," said Chairman and Managing Director Sushil Suri.

"The company is all geared up for increasing its focus on backward integration and capacity enhancement in order to reduce its dependency on imports from across the globe, particularly China, in the coming years," he said in a statement.

The bulk drugs (active pharmaceutical ingredient) segment contributed about 58 per cent to the company's total turnover in Q3 FY 20. The company's expanding domestic reach assisted in achieving a higher topline, Morepen said.

Morepen is engaged in the manufacturing and sale of active pharmaceutical ingredients, bulk drugs, home diagnostics, formulations and over-the-counter products.

The company's manufacturing facility at Baddi in Himachal Pradesh comprises a scientifically integrated complex of 10 plants, each with a specific product profile.

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