Morepen Laboratories Q4 PAT doubles to Rs27cr led by robust API biz; Plans to set-up an R&D Centre at Baddi (HP)

For the full year, the company's net revenue in FY’21 grows by 39% at Rs1200.13cr as against Rs862.55cr in FY'20.

May 04, 2021 03:05 IST India Infoline News Service

Morepen Laboratories has recorded a consolidated net profit of Rs26.76 cr in the quarter ending March 2021 (Q4FY21) period, rising by a whopping 143% from a profit of Rs11.02cr a year ago same period. Consolidated net revenue was at Rs290.76cr in the quarter under review, increasing by 40% from Rs208.39cr in the same quarter last year.

Sushil Suri, Chairman and Managing Director, Morepen Laboratories Limited said commenting on the API business, “We are seeing a big shift in API strategy as fifteen blockbuster drugs are losing patent in the coming five years and a market of 942 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.”

For the full year, the company's net revenue in FY’21 grows by 39% at Rs1200.13cr as against Rs862.55cr in FY'20. Net Profit After Tax recorded the highest ever growth of 189 % in its Annual Profits and has more than doubled at Rs97.09cr.

As per Morepen, API business registered an impressive Revenue growth of 44 per cent in, for the current year, was 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 despite restricted movements and zero travels. All the five markets America, South America, Europe, Africa, Asia and India have grown at an incredible rate strengthening the company's position in the time of this pandemic.

Notably, the Rs178cr 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 a capacity of 2000 MT over 40 new products.

Further, as per the audit report, the company's Home Diagnostics Devices business was working 24X7 to keep the supplies on in the difficult times' Covid 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 per cent) and Blood Pressure Monitors (up by 117 per cent). During the year the company increased the production of Oximeters and had also increased the supply of Oxygen Concentrators. The company is planning to ramp the production of Oximeters and Concentrators looking at the market conditions and growing Covid menace.

Suri said, "During last one year, Home Diagnostics market has multiplied 20-30 times due to fo 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)."

“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 Suri.

Suri also 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."

At around 3.09 pm, Morepen was trading at the lower circuit of Rs65.25 per piece down by 4.95% on Sensex.

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