Morepen Labs soars after stellar Q1 performance

Morepen Laboratories jumped 4.70% to Rs 60.86 after the company reported a consolidated net profit of Rs 36.17 crore in Q1 FY25, which is a rise of 147% as compared with the PAT of Rs 14.63 crore in Q1 FY24.

Net revenue increased by 14% year-over-year (YoY) to Rs 458.64 crore during the period under review.

The company holds a strong position in the Blood Glucometers and Blood Pressure (BP) Monitors markets. In Q1 FY25, the medical devices business recorded revenue of Rs 138 crore, marking a 20% growth year-on-year.

Pharma segment Q1 FY25 revenue at Rs 320 crore registered a growth of 11% year-on-year, and it represents 70% of consolidated Q1 FY25 quarterly revenues.

EBIDTA improved by 93% to Rs 55.05 crore in Q1 FY25 from Rs 28.51 crore in Q1 FY24.

Profit before tax in Q1 FY25 stood at Rs 48.17 crore, up by 135% from Rs 20.51 crore in Q1 FY24.

Morepen Laboratories said that the companys Blood Glucometer meter capacity would be doubled to 5.0 million meter pa from the current 2.5 million meter, while strip manufacturing capacity will increase from 500 million strips to 700 million strips per annum within the next 18 months.

The company has successfully completed the subscription of a QIP for Rs. 200 crores on 5 August 2024. The issue was oversubscribed by 1.68 times, demonstrating strong confidence from institutional investors.

Marquee global investors like Bank of America Securities Europe (BOFA), Samsung India, Citigroup, Societe Generale, Nomura, BNP Paribas, Morgan Stanley and Eminence are some of the select names that have partnered with Morepen, paving the way for a promising future.

Sushil Suri, chairman and managing director of Morepen Laboratories, commented on the QIP, stating, This strategic fundraise marks a pivotal point in the companys growth journey. With the influx of this new capital, we will accelerate our capacity expansion plans and broaden our market reach.

Morepen Laboratories is an established player in domestic and international Active Pharmaceutical Ingredients ('API') markets. It is also planning to enter the anti-cancer segment by considering development of various potential candidates from list of top 100 synthetic molecules. The company also engaged in home diagnostics products, formulations and grooming products under the brand name GUBB.

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