Pharmaceutical major Morepen Laboratories said on Monday that it has wiped out all pending debts and clocked 125 per cent rise in standalone net profit at Rs 9.2 crore in the fourth quarter of financial year 2018-19.
At the same time, the total revenue increased 31 per cent at Rs 207 crore led by good growth in all business segments. The company's net profit was at Rs 4.11 crore on total revenue of Rs 158.3 crore in the corresponding quarter of previous fiscal.
Significantly, Morepen Labs had peak outstanding debt of Rs 750 crore with multiple banks in 2004-05 which was restructured through strategic debt restructuring scheme of the Reserve Bank of India in 2006 with a one-time settlement amount of Rs 150 crore.
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," said Chairman and Managing Director Sushil Suri adding all loans were serviced from internal cash accruals.
In the entire FY 2018-19, Morepen Labs reported standalone revenue of Rs 721 crore, registering a jump of 28 per cent. Net profit stood at Rs 28.6 crore, up by 10 per cent from Rs 26.1 crore in FY 2017-18.
"Our increased focus on research and development besides documentation for regulated markets has helped us build a strong pipeline of latest anti-diabetic range of active pharmaceutical ingredient focused at both international as well as domestic market," said Suri.
Morepen is engaged in the manufacturing and sale of active pharmaceutical ingredients, bulk drugs, home diagnostics, formulations and over the counter products. The company's manufacturing facility at Baddi in Himachal Pradesh comprises a scientifically integrated complex of 10 plants, each with a specific product profile.
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