Morepen Labs Clocks Double Digit Growth in its Sales and Net Profit in FY 2019-20

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Morepen Laboratories Ltd. has reported a 16.43 per cent rise in its Net Profit (Consolidated) at Rs. 33.58 crore. Net Consolidated Revenue during the year rose by 11.7 per cent at Rs. 862.55 crore. The company’s net profit was Rs. 28.84 crore on a net revenue of Rs. 772.21 crore in the previous fiscal.

 

Dr. Morepen range of COVID essential products

 

 

Highlights (FY 2019-20 and Q4 FY 2019-20)

 

The EBIDTA (Consolidated) for FY 2019-20 rose by 9.6 per cent at Rs. 78 crore and the Cash Profit (Consolidated) by 10 percent at Rs. 76.02 crore. Consolidated Profit before Tax (PBT) recorded extraordinary growth by 34 per cent at Rs. 39.11 crore, up from Rs. 29.18 crore in the previous fiscal.

 

Domestic Sales Revenue in FY 2019-20 was up by 11.75 per cent at Rs. 496.36 crore and Export Sales Revenue up by 10 per cent at Rs. 343.24 crore. In the domestic market, best performance came from Atorvastatin with 94 per cent growth in FY 2019-20. In the exports market, Rosuvastatin registered a good growth of 30 per cent and Loratadine 18 percent in FY 2019-20. API Sales Revenue during the year grew by 14.74 per cent at Rs. 473.95 crore with an impressive growth of 28 percent in Domestic and 10 percent in Exports. Home Diagnostics Sales Revenue grew by 20.46 per cent at Rs. 168.35 crore with Blood Glucose Moniotrs’ sales up by 29 percent and Nebulisers’ by 44 percent. OTC Sales Revenue grew by 18.84 percent at Rs. 64.63 crore with Grooming Business showing extraordinary growth of 58 per cent. Branded Formulation Sales Revenue grew by 18.62 per cent at Rs. 40.64 crore. Generic Formulation was down by 18.49 percent at Rs. 96.93 crore in FY 2019-20.

 

The bulk drugs (API) segment contributed around 56 per cent to the company’s total sales turnover in FY19-20. Within the API segment, Finished APIs have registered a growth of 14 per cent at Rs. 414.39 Crores, Intermediates’ grew by 24 per cent at Rs. 31.50 Crores whereas New Molecules’ have added Rs. 28.06 Crores to the company’s top line.

 

Company’s consolidated Net Revenue in Q-4 FY 2019-20 was marginally down by 5.2 per cent at Rs. 208.39 crore due to Covid-19 lock down effect in last two weeks of March 2020. Consolidated Net Profit in Q4 FY 2019-20 was up by 5.1 per cent at Rs. 11.02 crore. Consolidated Profit Before Tax (PBT) recorded growth of 6.2 per cent at Rs. 11.36 crore, up from Rs. 10.70 crore in the corresponding quarter of previous fiscal.

 

This was disclosed by Mr. Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., after the Q4 and annual FY 2019-20 results’ board meeting here on Monday. “The Company has achieved good growth and smoothly sailed through the difficult business challenges posed by the Novel Coronavirus Disease globally. Impact of COVID-19 and the subsequent lockdown in the entire country has been mitigated by the company to a large extent by its timely launch of various new products in the personal hygiene and protection segment.”

 

"The company’s OTC products division has launched a wide range of personal hygiene and COVID protection products like non-contact infrared thermometers, oximeters, hand sanitizers (both in gel and rub form), anti-bacterial hand wash, anti-bacterial spray, anti-bacterial soap, disinfectant solutions, N-95 and 3-ply face masks, Nitrile gloves, Vitamin-C gummies for kids, multivitamins, chyawanprash and curcumin tablets to fight COVID-19 at ground level and empower its customers to stay safe. Morepen has launched its hand sanitizers as per WHO formula in various pack sizes starting from 100 ML and goes upto 5 Litres bulk pack. Company’s anti-bacterial disinfectant solutions and sprays are aimed at washing, cleaning and disinfecting any type of small and large surfaces," Mr. Suri stated.

 

The Board today has also approved incorporation of two wholly owned subsidiaries to focus on Finished Dosages business and its new initiatives of online business in the Health & Beauty Segment. In the last Board meeting held on 14.02.20, the Board had approved formation of a similar wholly owned subsidiary for its Diagnostic business also.

 

Synopsis of Annual and Quarterly Performance:

                                                                                                                                            Rs. in Crores

 

Particulars

Consolidated Annual Results

Consolidated Fourth Quarter Results

FY 2019-20

FY 2018-19

% Growth

Q4 FY 2019-20

Q4 FY 2018-19

% Growth

Net Revenue

862.55

772.21

11.7%

208.39

219.74

(5.17%)

Expenditure

784.55

701.02

11.92%

187.78

196.97

(4.67%)

EBIDTA

78

71.19

9.56%

20.61

22.78

(9.5%)

Interest

1.98

2.11

(6.16%)

0.62

0.93

(33.33%)

Cash Surplus

76.02

69.08

10.04%

19.99

21.85

(8.51%)

Profit before Tax

39.11

29.18

34.04%

11.36

10.70

6.17%

Net Profit after

Tax (PAT)

33.58

28.84

16.43%

11.02

10.49

5.05%

 

The Consolidated domestic Sales Revenue in Q4 FY19-20 was up by 3.43 per cent at Rs. 122.55 crore and Export Sales Revenue was down by 16.35 per cent at Rs. 80.64 crore. API business exports got a hit in last two weeks of March due to COVID-19 lock down situation which was compensated by excellent sales performance in April and May 2020. API business was down by 9.79 percent in Q4 FY 19-20 compared to corresponding quarter of the last fiscal. Home diagnostics business was not impacted by lock down in March and registered exemplary growth of 43.79 percent with Blood Glucose Monitors’ sale recording a jump of 78 percent in this tough situation in Q-4 FY 19-20. The Company launched Non-Contact Infrared Thermometers in the month of April 2020. Branded formulation also registered growth of 9.48 percent in Q-4 FY 19-20 vis-à-vis corresponding quarter of the previous fiscal. OTC Business also launched Burnol Antiseptic Solution and Antiseptic Spray, Anti-bacterial solutions and sprays, This segment achieved extraordinary growth of 30.97 percent in Q4 FY 19-20 with Branded OTC recording a whooping growth of 72 percent. Generics formulation witnessed a major shortfall of 40.24 percent in Q4 FY 19-20.

 

About Morepen Laboratories Ltd. (www.morepen.com)

Morepen Laboratories Ltd. is a 36-year old, around Rs. 900 Cr. pharmaceutical and healthcare products company. The company went public in the year 1993 and is currently listed at both the Bombay Stock Exchange as well as the National Stock Exchange.

 

Morepen is engaged in the manufacturing and sale of APIs/Bulk Drugs, Home Diagnostics, Formulations and OTC products. The company’s state-of-the-art manufacturing facility at Baddi (Himachal Pradesh) comprises a scientifically integrated complex of 10 plants, each with a specific product profile.

 

The USFDA approved plant at Masulkhana is for manufacture of Loratadine, an anti-allergy drug – internationally known as Claritin. Desloratadine and the new blockbuster drug Montelukast are also manufactured at this FDA approved site. The large and spread out manufacturing facility at Baddi has EU GMP & WHO GMP Standards and manufactures latest and much in demand APIs like Atorvastatin, Rosuvastatin, Fexofenadine and others for regulated markets of Europe, USA and also for non-regulated markets across the globe.

 

Morepen markets over 100 branded formulations under six major therapeutic segments in the domestic market. The company’s manufacturing facilities are backed by a strong dedicated team of research and development (R&D) professionals who ensure stringent quality standards. In Home - Diagnostics business, Morepen has a formidable presence in Blood Glucose Monitors and Blood Pressure Monitors, in the domestic markets. The company’s OTC brands are being promoted under its wholly owned subsidiary Dr. Morepen Limited. Dr. Morepen’s famous OTC product line, including Burnol, Lemolate, Sat-Isabgol, Pain-X and others, has a significant presence in the domestic market.