Morepen Labs net profit up by 125% at INR 9.22 crore

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API Sales Revenue grew by 34% at INR 125.48 crore and Home Diagnostics Sales Revenue by 12% at INR 27.77 crore.

HIGHLIGHTS Q4 FY 2018-19

• Total Revenue (Standalone) up by 31 per cent at Rs. 207.10 crore and Consolidated Total Revenue up by 28 per cent at Rs. 219.74 crore registering a good growth in all business segments.
• Standalone Net Profit (PAT) is up by 125 per cent to Rs. 9.22 crore from Rs. 4.11 crore in the corresponding quarter of previous fiscal.
• Standalone Cash profit up by 45 per cent at Rs. 20.17 crore for Q4’FY19.
• Export Sales Revenue up by 51 per cent at Rs. 96.41 crore due to high impetus in API business. In the export market, Monetlukast exports have shown outstanding growth of 114 per cent in Q4.
• Domestic Sales Revenue up by 13 per cent at Rs. 118.84 crore. In the domestic market, best performance came from Loratadine with 102 per cent growth in Q4.
• Formulation Sales Revenue jumped by 30 per cent at Rs. 49.35 crore
• Company becomes debt free by clearing all its outstanding debts in this quarter.

Morepen Laboratories Ltd. has reported a steep 125 per cent rise in its Net Profit (Standalone) at INR 9.22 crore and 31 per cent rise in its Total Revenue (Standalone) at INR 207.10 crore in fourth quarter (Q4) of Financial year 2018-19. The company’s net profit was at INR 4.11 crore on a total revenue of INR 158.34 crore in the corresponding quarter of previous fiscal.

The Consolidated Total Revenue in Q4 FY 2018-19 went up by 28 per cent at INR 219.74 crore. Export Sales Revenue in Q4 FY 2018-19 was up by 51 per cent at INR 96.41 crore and Domestic Sales Revenue up by 13 per cent at INR 118.84 crore. In the export market, Monetlukast exports have shown outstanding growth of 114 per cent and Rosuvastatin exports have recorded growth of 110 percent in Q4 FY 2018-19. In the domestic market, best performance came from Loratadine with 102 per cent growth in the quarter.

API Sales Revenue grew by 34 per cent at INR 125.48 crore, Home Diagnostics Sales Revenue by 12 per cent at INR 27.77 crore and Formulation Sales Revenue by 30 per cent at Rs. 49.35 crore.

The Company had peak outstanding debt of INR 750.00 crores with multiple banks in FY’05 which was restructured through CDR Scheme of RBI in 2006 with an upfront payment of OTS amount of INR 150.00 crores. All the Loans have been fully serviced from internal cash accruals and there is no outstanding loan dues as on 31.03.19. The Company has cleared all its outstanding debt in the books to become a debt free entity in fiscal 2018-19.

This was disclosed by Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., after the Q4 and FY 2018-19 results’ board meeting here on Saturday. “Having cleared all the outstanding debt of various banks, the Company now enjoys the status of a Debt Free Company and is now poised for next phase of growth and stability.” “Our increased focus on R&D and documentation for regulated markets has helped us build a strong pipeline of latest Anti-diabetic range of APIs focused at both international as well as domestic market. We remain committed to deploy more resources on our R&D initiatives.” Suri added.

Consolidated Cash Profit in Q4 FY 2018-19 was up by 27 per cent at Rs. 21.85 crore. Consolidated Profit Before Tax (PBT) recorded extraordinary growth by 58 per cent at Rs. 10.70 crore, up from Rs. 6.78 crore in the corresponding quarter of previous fiscal. Consolidated Net Profit (PAT) also recorded growth of 54 per cent at Rs. 10.49 crore during the period.

The bulk drugs (API) segment contributed around 58 per cent to the company’s total turnover in Q4’FY18-19. Within the API segment, Finished APIs have registered a growth of 26 per cent at INR 111.03 Crores, Intermediates’ 13 per cent at INR 4.53 Crores whereas New Molecules’ have added INR 9.94 Crores to the company’s top line, thanks to relentless efforts of R&D team .

Synopsis of FY 2018- 19-Q4 Performance:

Blood Pressure Monitors recorded a growth of 61 percent and Nebulisers registered a whopping growth of 406 per cent in their respective sales revenue in Q4’FY18-19. Looking at increasing incidence of diabetic cases in India, the Blood Glucose Monitors and Blood Pressure Monitors segment offers great opportunity for growth in the coming years. Total quarterly sales from this business stood at INR 27.77 crore in Q4’FY18-19 vis-a-vis INR 24.71 crore in corresponding quarter of the previous fiscal. Sales from OTC (Over the Counter) products were down by 5 per cent in Q4’FY18-19.

In the entire FY 2018-19, Morepen Laboratories Ltd. has reported a Total Revenue (Standalone) of INR 720.91 crore registering a jump of 28 per cent. The Net Profit (Standalone) during the year stood at Rs. 28.61 crore, up by 10 per cent from INR 26.12 crore net profit registered in FY’2017-18. Consolidated Total Revenue have grown by 27 percent at INR 772.21 Crore. Consolidated PBT in FY 2018-19 was lower by 1.4 per cent at INR 29.18 crore and Consolidated net profit was lower by 2.5 per cent at INR 28.84 crore compared to that of FY 2017-18.

During the year, there was increased cost pressure due to extraordinary increase in prices coupled with shortages of various raw materials imported from China. This has materially affected the profitability of the company in last three quarters. However, despite this, there has been a good growth of business in all segments.