Morepen Lab's Q4 earnings stable; to incorporate two subsidiaries soon

Consolidated net profit was at Rs11.02cr during March 2020 (Q4FY20) quarter compared to a profit of Rs10.49cr in Q4FY19.

Jun 23, 2020 01:06 IST India Infoline News Service

New Delhi-based drug firm Morepen Laboratories recorded a 5% rise in consolidated net profit at Rs11.02cr during March 2020 (Q4FY20) quarter compared to a profit of Rs10.49cr in the corresponding period of the previous year. However, net revenue dropped by 5.17% to Rs208.39cr in the quarter against Rs219.74cr a year ago same period.

Post Q4 announcement, Morepen, on Tuesday's trading session, gave away early gains. At around 1.49 pm, the stock was performing at Rs28.40 per piece, down by 4.70%. The stock had opened at an intraday high of Rs31.80 per piece on Sensex.

Consolidated domestic sales revenue in Q4 rose by 3.43% yoy to Rs122.55cr, on the other hand, export sales revenue fell by 16.35% yoy to Rs80.64cr in the same period.

Further, Morepen highlighted "API business exports got a hit in the last two weeks of March due to Covid-19 lockdown situation which was compensated by excellent sales performance in April and May 2020. API business was down by 9.79% in Q4 FY 19-20 compared to the corresponding quarter of the last fiscal. Home diagnostics business was not impacted by lockdown in March and registered exemplary growth of 43.79% with Blood Glucose Monitors'sale recording a jump of 78% in this tough situation in Q-4 FY 19-20".

Here's the key highlight for FY20 performance:
  • PAT was up by 16.43% at Rs33.58cr in FY20.
  • Revenue was higher at Rs862.55cr in the fiscal from Rs772.21cr in FY19. This growth was mainly on account of consistent growth in sales of Bulk Drugs (APIs), Diagnostic Devices and OTC products during the financial year.
  • Domestic sales revenue for FY20 went up by 11.75% at Rs496.36cr. In the domestic market, the best performance came from Atorvastatin with 94% growth.
  • In the fiscal, Morepen launched a wide range of non-contact infrared thermometers, oximeters, hand sanitisers, hand rubs, hand wash, anti-bacterial spray, antibacterial soap, disinfectant solutions, face masks, gloves, Vitamin- C gummies for kids, Multivitamins, Chyawanprash and curcumin tablets to fight Covid-19 at ground level.
Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd said, "The Company has achieved good growth and smoothly sailed through the difficult business challenges. posed by the Novel Corona Virus Disease globally. Impact of COVID-19 and the subsequent lockdown in the entire country has been mitigated by the company to a large extent by its timely launch of various new products in the personal hygiene and protection segment."

In a meeting held on Monday, the company's board has approved the incorporation of two wholly-owned subsidiaries to focus on Finished Dosages business and its new initiatives of online business in the Health & Beauty Segment.

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