Morepen records stellar 189% jump in Net Profits and 39% growth in the Revenue in FY21

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Morepen Laboratories Ltd (www.morepen.com) has reported a 189 per cent rise in its Net Profit (Consolidated) at Rs. 97.09 crore.  Net Consolidated Revenue during the year rose by 39 per cent at Rs. 1200.13 crore. In the previous fiscal, the company recorded a net profit of Rs. 33.58 crore with annual revenue of Rs. 862.55 crore.

The EBIDTA for FY 2020-21 grew up by 67 per cent at Rs. 130.58 crore and the Cash Profit by 69 per cent at Rs. 128.67 crore. Profit before Tax (PBT) is exceptionally up by 151 per cent at Rs. 98.51 crore, up from Rs. 39.11 crore in the previous fiscal.

Export Revenue shares soared to 40 percent of the total Revenue in FY21 and exports grew by 39 per cent to Rs. 476.64 crore.Major exports revenue comes from API business which has 69 percent export sales to regulatedmarkets as the company maintained the supplies to all the customers worldwide despite lockdown and cargo restrictions. Domestic Revenue also recorded an excellent growth of 39 per cent in FY21 at Rs. 723.48 crore in middle of lockdowns and Covid-19 constraints.

During the year, API share in total revenue has gone up from 60.8 percent to 62 percent a jump of 120 bps and also Medical Devices also had an outstanding gain of 450 bps from 21.6 percent to 26.1 percent while formulation business lost 570 bps in the total revenue.

Mr. Sushil Suri, Chairman and Managing Director, Morepen Laboratories Limited (NSE: MOREPENLAB, BSE 50288) said commenting on the API business, “We are seeing big shift in API strategy as fifteen blockbuster drugs are losing patent in the coming five years and a market of $42 Billion is opening for generic players like us and we are all geared to launch the products on patent expiry. Our market is likely to expand fifteen to twenty times.”

We are setting up a world class R&D Centre as the company is increasing its thrust on basic research looking at the need of the hour in the time of this crisis and also to strengthen the company’s effort to become the manufacturing hub for global players. R&D Centre will be housed in Baddi and will cater to all business divisions in addition to expansion plans for all its verticals including APIs, Formulations and Medical Devices.” added Mr. Suri.

API business registered an impressive Revenue growth of 44 per cent infor the current year, were on the strength of quality growth recorded both in Domestic business as well as Exports Business, with domestic API Revenues going up by 58 per cent and Export Revenues recording a growth of 39 per cent. The company added 104 new customers during the year in spite of restricted movements and zero travels. All the five markets America, South America, Europe, Africa, Asia and India have grown at incredible rate strengthening the company’s position in the time of this pandemic.

Rs. 178 crore expansion plan of API has already been approved by the State Government and has also got Environmental clearance and work will start soon. This plant would start functioning in a period of three years and would add capacity of 2000 MT over 40 new products.

Home Diagnostics Devices business was working 24X7 to keep the supplies on in the difficult times Coiv-19 pandemic during the year and help the customers with home diagnostic devices to help them at home. During FY21 Devices sales grew exponentially up by 71 per cent at Rs. 287.37 crore with major contribution coming from Blood Glucose Monitors (up 51 percent) and Blood Pressure Monitors (up by 117 percent). During the year the company increased production of Oximeters and had also increased the supply of Oxygen Concentrators. Company is planning to ramp the production of Oximeters and Concentrators looking at the market conditions and growing Covid menace.

Mr. Suri added, “During last one year, Home Diagnostics market has multiplied 20-30 times due to fatal pandemic all around us and people are locked up at home and need to have POC devices for testing at home. Average household spend has gone up a few hundred rupees to Rs,5000-6000 per month and it is expected to increase further with more and home devices and tests coming up. As a company we are all fully prepared to address this growing needs and demand of the market and expanding diagnostic devices manufacturing facility at Baddi (HP)

OTC Sales Revenue under the brand Dr. Morepen (www.drmorepen.comgrew by 32.37 percent at Rs. 85.55 crore and company has major expansion plans to grow the reach and product basket of Dr. Morepen and also invest in the backward integration of research of key products being sold both online and offline.

Speaking on the development Mr. Suri added, “We have also actively invested in India’s 18 to 25years generation and millennials including Gubb (www.gubbworld.com) and our specialty skincare brand “Happier” where we bring simplified scientific skincare formulation expertise especially suited to Indian skin and weather. We are seeing exponential growth in online sales and are investing in frontend and backend platforms/technology across Diagnostics, OTC (including Gubb and Happier).

On the finished dosage side, the company has developed 13 ANDAs and is setting up a USFDA standard facility to feed the regulatory markets and it may take two years to get approvals and exports to start from that plant.

Mr. Suri spoke, “We are very bullish on the ANDA pipeline keeping in mind $42 Billion worth of products going off patent in next five years and would like to go a step forward and have our own ANDAs with Morepen leadership in the API and strong credibility with our customers.”

Company’s consolidated Net Revenue in Q-4 FY 2020-21 is also jumped up by 40 percent at Rs. 290.76 crore. Net Profit in Q4 FY 2020-21 at Rs. 26.76 crore is up by 143 per cent. Profit Before Tax (PBT) recorded growth of 143 per cent at Rs. 27.63 crore, up from Rs. 11.36 crore in the corresponding quarter of previous fiscal.

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