Morepen Labs spurts after blockbuster results

Morepen Laboratories jumped 7.82% to Rs 29.65 after the company's consolidated net profit surged to Rs 27.16 crore in Q2 September 2020 from Rs 4.08 crore in Q2 September 2019.

Net revenue for Q2 FY21 stood at Rs 340.13 crore as against Rs 216.24 crore for Q2 FY2019-20, registering a rise of 57% year-on-year (YoY). This rise was mainly on account of a consistent growth in sales of bulk drugs (APIs), diagnostic devices and OTC products during the quarter.

Profit before tax in Q2 September 2020 soared almost three times to Rs 27.51 crore from Rs 9.23 crore in Q2 September 2019. The company wrote back taxes worth Rs 0.35 crore in the second quarter. EBIDTA jumped 99% to Rs 35.49 crore during the period under review.

API business remained the lead growth driver in Q2 FY21 with a 60% growth at Rs 185.69 crore, thus contributing 56% to the company's top line during the quarter.

While the export sales revenue jumped up by 38% to Rs. 128.21 crore, domestic sales revenue grew by 73% at Rs.211.92 crores in Q2 FY21 over Q2 FY20.

Home diagnostics sales revenue grew by 98% YoY to Rs. 90.35 crore in Q2 FY21 as thermometers' sales (including non-contact infrared thermometers) increased by 311% and that of blood pressure monitors by 185% during the quarter.

OTC business sales revenue grew by 53% YoY to Rs. 23.07 crore on account of a wide range of products launched by the company during the quarter to fight COVID-19 pandemic.

During the current year, the company has been granted three new patents for US and Indian markets in addition to six patent applications filed to strengthen the IPR (intellectual property rights) basket of the company for various new products. Many new products in the anti- diabetes, anti-depressant, and anticoagulant segments have been developed by the company's research and development (R&D) centre during the first half of the current fiscal.

The company has also filed one drug master file (DMF) in the United States and three Import drug licenses (IDLs) for Chinese markets.

Morepen Laboratories is a pharmaceutical and healthcare products company. It is a leading manufacturer of high-quality APIs, Home Diagnostics, Formulations and OTC products in north India.

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