Morepen Labs bucks trend after robust Q1 numbers

Morepen Laboratories rose 2.58% to Rs 27.85 after the company's net profit jumped 153% to Rs 19.37 crore on 27% increase in net revenue to Rs 258.97 crore in Q1 June 2020 over Q1 June 2019.

EBIDTA jumped 42% to Rs 27.90 crore in Q1 FY21 from Rs 19.61 crore in Q1 FY20. Profit before tax in Q1 June 2020 stood at Rs 19.56 crore, up 155% compared with Rs 7.68 crore in Q1 June 2019. The growth was mainly on account of a consistent growth in sales of bulk drugs (APIs), diagnostic devices and OTC products during the quarter.

Sushil Suri, chairman and managing director, Morepen Laboratories, said: "API business of the company is doing exceedingly well and is gaining greater traction in the international markets, thanks to highest standards of quality maintained by the company for latest innovative products. Encouraged by the unfulfilled demand of existing products and keeping in mind the strong pipeline of APIs under development which are going generic over the next 5-6 years, the company has envisioned a mega expansion plan for existing and new products at its Baddi plant."

The company's board approved an expansion plan involving an outlay of Rs 178 crore, which would primarily be financed through internal accruals. This would see fresh addition of APIs manufacturing capacities by about 2000 MT per annum in addition to 3000 MT per annum capacity already installed. The new capacity additions will cover over 40 fresh and existing bulk drugs and are expected to commence commercial production over the next three years.

"Expansion plan of API manufacturing facility is well in sync with present global trend where all major companies are shifting their outsourcing from China. As a result of this, Indian API industry is rightly placed to become the global outsourcing hub for foreign pharmaceutical giants, with best international quality standards supported by complete documentation and FDA Approvals in place. Govt. of India has also come forward in a very aggressive manner to support this mission and make India self-reliant in APIs," Suri added.

Morepen Laboratories is a pharmaceutical and healthcare products company. Morepen is engaged in the manufacturing and sale of APis/ Bulk Drugs, Home Diagnostics, Formulations and OTC products.

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