Morepen Laboratories Ltd., a leading API player in regulated markets, has reported a sharp rise of 566 per cent in its Net Profit after Tax (Consolidated) at Rs27.17cr in the second Quarter ended September 30, 2020. This significant improvement in bottom line has been achieved by the company on account of better margin realization and despite a onetime hit of Rs12.84cr taken by it towards the dues of fixed deposit holders paid during the quarter.
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Net Profit After Tax for Q2FY21 has grown sharply by 566 per cent at Rs27.17cr while Net Profit Before Tax jumped up by 198 per cent on account of better margin realization during the quarter.
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Net Revenue for Q2FY21 stood at Rs340.13cr as against Rs216.24cr for Q2’FY2019-20, registering a rise of 57 per cent. This rise was mainly on account of a consistent growth in sales of Bulk Drugs (APIs), Diagnostic Devices and OTC products during the quarter.
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API Business remained the lead growth driver in Q2 FY 2020-21 with a 60 per cent growth at Rs185.69cr, thus contributing 56 percent to the company’s top line during the quarter.
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EBIDTA and Cash profit for Q2FY21 went up by 99 per cent and 101 per cent at Rs35.49cr and Rs35.20cr, respectively.
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Profit before Tax for Q2’FY 2020-21 was up by 198 per cent at Rs27.52cr.
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Export Sales Revenue for Q2FY21 jumped up by 38 per cent at Rs128.21cr. Domestic Sales Revenue grew by 73 per cent at Rs211.92crs during the quarter.
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Home Diagnostics Sales Revenue grew by 98 per cent at Rs90.35cr in Q2FY21. Thermometers’ sales (including non-contact infrared thermometers) increased by 311 per cent and that of Blood Pressure Monitors by 185 per cent during the quarter.
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OTC Business Sales Revenue grew by 53 per cent at Rs23.07cr on account of a wide range of products launched by the company during the quarter to fight Covid-19 pandemic.
Net Revenue (Consolidated) during the quarter rose by 57% at Rs340.13cr mainly on account of a consistent growth in sales of Bulk Drugs (APIs), Diagnostic Devices and OTC products during the quarter. The company’s net profit was Rs4.08cr on a net revenue of Rs216.24cr in the corresponding quarter of previous fiscal.
EBIDTA for Q2FY21 rose by 99% at Rs35.49cr and Cash Profit by 101 per cent at Rs35.20cr. Profit before Tax (PBT) for Q2FY21 stood at Rs27.52cr, recording an extraordinary growth of 198 per cent from Rs9.24cr PBT earned in the corresponding quarter of the previous fiscal.
During the current year, 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. Morepen Labs has also filed one Drug Master File (DMF) in the United States and three Import Drug Licenses (IDLs) for Chinese Markets.
At an Extraordinary General Meeting of the company’s shareholders held last week, members have approved issuance of upto 16.85cr Fully Convertible Warrants at a price of Rs25/- each aggregating Rs421.25cr to persons from promoters’ group. These Warrants would be eligible for conversion into Equity shares in the ratio of 1:1 on or before the expiry of 18 months from the date of their allotment.
API business maintained its lead in the second quarter contributing 56 per cent to the company’s topline in Q2FY21. API Sales Revenue during the quarter grew by 60 per cent at Rs185.69cr. Within the API segment, four key products Loratadine, Montelukast, Atorvastatin and Rosuvastatin contributed Rs118.90 Crores to the company’s topline and registered a remarkable growth of 42% over corresponding quarter in the previous fiscal. This was disclosed by Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., after the Q2’FY 2020-21 results’ board meeting here on Monday. “Company is investing heavily to build strong pipeline of products to be launched in three to four years. This investment would go both in R&D and in building new product blocks to create extra production capacities. The focus of the company continues to remains on the chronic and lifestyle diseases.”
Synopsis of Quarterly and Half-Yearly Performance (Consolidated)
API Exports recorded an impressive growth of 38 percent at Rs127.56cr in Q2’FY 2020-21. Business from European markets soared by 10 percent and that from APAC region by 45 percent in Q2FY21. Offtake from the U.S. market remained slow while that from other semi-regulated markets grew by 207 percent during the quarter. Domestic API business recorded a growth of 143 percent at Rs58.13cr with a remarkable improvement of 124 per cent in the sales of Montelukast.
Home Diagnostics Sales Revenue grew by 98 per cent in Q2FY21 at Rs90.35cr with Thermometers’ sales growing by around 311% (mainly due to non-contact infrared thermometers) and Blood Pressure Monitors by 185 percent.
OTC Sales Revenue grew by 53 per cent at Rs23.07cr on account of more than 20 different products launched by the company during the quarter to fight Covid-19 pandemic.
Revenues (Consolidated) for six months ending 30 September 2020, rose by 43 per cent at Rs599.10cr. Net profit after tax (PAT) for the aforesaid period stood at Rs46.53cr, registering a rise of 296% against the corresponding period of the previous financial year.
Morepen ended at Rs29.65 per piece up by Rs2.15 or 7.82% from its previous closingon the BSE.