Don’t miss the latest developments in business and finance.

Morepen Labs reports growth-filled 4th Quarter to close FY 2017-18 with a 25 pct rise in Net Profit

Image
ANI New Delhi [India]
Last Updated : May 16 2018 | 7:15 PM IST

Highlights 12M FY 2017-18 (Consolidated)

Net profit rises by 25 percent at Rs. 29.59 crore.

Net sales revenue up by 1.9 percent at Rs. 598 crore.

Domestic sales up by 21.3 percent at Rs. 414 crore.

The overall home diagnostic category grows by 34 percent at Rs. 103.35 crore.

Blood Pressure Monitors and Blood Glucose Monitors records highest growth on annual basis @ 75 percent and 38 percent respectively.

More From This Section

Annual interest cost fell by 43 percent at Rs. 4.36 crore. The company's aim to become a Zero Debt company by June-July, 2018.

USFDA clears Morepen's anti-asthma bulk drug Montelukast Sodium for sale in the US market.

The company entered into a tie-up with Vesale Pharma International of Belgium to strengthen its position in the Rs. 1000 crore probiotics market in India.

Improved Home Diagnostics' sales revenue, better Cost Control, Higher EBIDTA, higher Cash profit and lower Interest cost aids in strengthening bottom line further in yet another consecutive financial year.

Highlights Q4 FY 2017-18 (Consolidated)

Net sales revenue up by 10.7 percent at Rs. 169 crore backed by improved sales revenue from Home Diagnostics, Formulations and OTC Businesses.

Domestic sales up by 52 percent at Rs. 122 crore.

EBIDTA rises by 24 percent at Rs. 18.13 crore.

Net Profit after tax marginally down by 4 percent at Rs. 6.75 crore.

Montelukast records highest growth amongst bulk drugs in the quarter @ 38 per cent followed by Rosuvastatin @ 11 per cent.

Blood Pressure Monitors' quarterly sales jump up by a whopping 57 percent & Blood Glucose Monitors by 26 percent.

Interest cost for the quarter falls further by 35 percent @ Rs. 81 lakhs only.

Morepen Laboratories Ltd. has reported a 25 percent rise in its consolidated net profit at Rs. 29.59 crore for the financial year 2017-18.

The net profit in the previous financial year i.e. FY 2016-17 stood at Rs. 23.63 crore.

The consolidated net sales revenue for the whole year stood at Rs. 598 crore registering a marginal increase of 1.9 per cent over previous year's sales of Rs. 586.41 crore.

During FY 2017-18, domestic sales were up by 21.3 percent at Rs. 414 crore and export sales were down by 25 percent at Rs. 183.66 crore.

EBIDTA in FY 2017-18 increased by around 5 percent at Rs. 68.45 crore, annual interest cost fell by 43 percent at Rs. 4.36 crore and cash profit increased by around 11 percent at Rs. 64.09 crore. The company aims to become a zero debt company by June-July' 2018.

Blood Pressure Monitors and Blood Glucose Monitors recorded highest growth on annual basis @ 75 percent and 38 percent respectively.

The combined sales revenue of Blood Glucose Monitors and Blood Pressure Monitors in FY 2017-18 increased to Rs. 86.57 crore as compared to Rs. 59.26 crore in the previous fiscal, registering a growth of 46 percent.

The company has touched a base of two million installations of Glucometers in FY 2017-18 and sold 68 million strips during the year against 48 Millions of last year.

This was disclosed by Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., after the Q4 and FY 2017-18 results board meeting here on Wednesday.

Q4 (Rs. in crores)

Net Sales Revenue

FY 2016-17 - 153.01

FY 2017-18 - 169.31

Percentage Growth - 10.7

Total Revenue

FY 2016-17 - 158.03

FY 2017-18 - 171.58

Percentage Growth - 8.6

Expenditure

FY 2016-17 - 141.36

FY 2017-18 - 153.45

Percentage Growth - 8.5

EBIDTA

FY 2016-17 - 16.67

FY 2017-18 - 18.13

Percentage Growth - 24

Interest

FY 2016-17 - 1.25

FY 2017-18 - 0.81

Percentage Growth - (35.4)

Cash Surplus

FY 2016-17 - 15.42

FY 2017-18 - 17.32

Percentage Growth - 12.3

Net Profit

FY 2016-17 - 7.00

FY 2017-18 - 6.75

Percentage Growth - (4)

12M

Net Sales Revenue

FY 2016-17 - 586.41

FY 2017-18 - 597.75

Percentage Growth - 1.9

Total Revenue

FY 2016-17 - 599.19

FY 2017-18 - 610.23

Percentage Growth - 1.8

Expenditure

FY 2016-17 - 534.01

FY 2017-18 - 541.78

Percentage Growth - 1.5

EBIDTA

FY 2016-17 - 65.18

FY 2017-18 - 68.45

Percentage Growth - 5

Interest

FY 2016-17 - 7.65

FY 2017-18 - 4.36

Percentage Growth - (43)

Cash Surplus

FY 2016-17 - 57.53

FY 2017-18 - 64.09

Percentage Growth - 11.4

Net Profit

FY 2016-17 - 23.63

FY 2017-18 - 29.59

Percentage Growth - 25

In the Fourth quarter (Q4) of FY 2017-18, consolidated net profit was lower by 4 percent at Rs. 6.75 crore as compared to Rs. 7 crore profit in the corresponding quarter of previous fiscal. However, EBIDTA in Q4 FY 2017-18 increased significantly by 24 percent at Rs. 18.13 crore and interest cost fell further by 35 percent at Rs. 81 lakhs only.

The consolidated Net Sales Revenue for Q4 FY 2017-18 increased by 10.7 percent at Rs. 169 crore backed by improved sales revenue from home diagnostics, formulations and OTC businesses. The company's expanding domestic reach assisted in achieving a higher topline in Q4 FY 2017-18. Domestic sales registered a growth of 52 percent in Q4 at Rs. 122 crore. Exports sales, however, registered a decline of 35 percent at Rs. 47 crore.

The bulk drugs (API) segment contributed around 60 percent to the company's total turnover in Q4 FY 2017-18. Morepen Lab's bulk drug Montelukast Sodium has once again emerged as a growth accelerator for the company in Q4 FY 2017-18, followed by Rosuvastatin. Sales from Montelukast Sodium increased by 38 percent in Q4 at Rs. 28.33 crore and sales from Rosuvastatin increased by 11 percent .

The Dr. Morepen basket, representing Home-Diagnostics category, did well during the quarter.

In this category, Blood Pressure Monitors registered a maximum growth of 57 percent in Q4 FY 2017-18 sales followed by Blood Glucose Monitors which recorded a growth of 26 percent.

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 division stood at Rs. 24.71 crore in Q4 FY 2017-18, registering a rise of 29 percent vis-a-vis corresponding quarter of the previous fiscal.

The entire "Dr. Morepen" brand portfolio has recorded sales revenue of Rs. 77.01 crore in the quarter under consideration as against revenue of Rs. 57.25 crore in the corresponding quarter of the previous fiscal, recording a growth of 35 percent.

Sales from OTC (Over the Counter) products, comprising Burnol & Lemolate, went up by 21 percent and from Formulations business by 44 percent in Q4 FY 2017-18.

Also Read

First Published: May 16 2018 | 7:15 PM IST

Next Story