Morepen Labs reports growth-filled fourth quarter to close FY 2017-18 with a 25 per cent rise in its net profit

Morepen Laboratories Ltd. has reported a 25 per cent rise in its consolidated net profit at Rs. 29.59 crore for the financial year 2017-18. The net profit in the previous financial year i.e. FY 2016-17 stood at Rs. 23.63 crore. The consolidated net sales revenuefor the whole year stood at Rs. 598 crore registering a marginal increase of 1.9 per cent over previous year’s sales of Rs. 586.41 crore.

During FY 2017-18, domestic sales were up by 21.3 per cent at Rs. 414 crore and export sales were down by 25 per cent at Rs. 183.66 crore. EBIDTA in FY 2017-18 increased by around 5 per cent at Rs. 68.45 crore, annual interest cost fell by 43 per cent at Rs. 4.36 crore and cash profit increased by around 11 per cent at Rs. 64.09 crore. Blood Pressure Monitors and Blood Glucose Monitorsrecorded highest growth on annual basis @ 75 percent and 38 percent respectively The combined sales revenue of Blood Glucose Monitors and Blood Pressure Monitors in FY 2017-18 increased to Rs. 86.57 crore as compared to Rs. 59.26 crore in the previous fiscal, registering a growth of 46 per cent. The company has touched a base of two million installations of Glucometers in FY 2017-18 and sold 68 million strips during the year against 48 Millions of last year.

“The company aims to become a zero debt company by June-July’ 2018,” Mr. Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., said after the Q4 and FY 2017-18 results board meeting..

Synopsis of FY 2017- 18-Q4 & 12M Performance (Consolidated):

Rs.in Crores

In the Fourth quarter (Q4) of FY 2017-18, consolidated net profit was lower by 4 per cent at Rs. 6.75 crore as compared to Rs. 7 crore profit in the corresponding quarter of previous fiscal. However, EBIDTA in Q4 FY 2017-18 increased significantly by 24 per cent at Rs. 18.13 crore and interest cost fell further by 35 per cent at Rs. 81 lakhs only. The consolidated Net Sales Revenue for Q4 FY 2017-18 increased by 10.7 per cent at Rs. 169 crore backed by improved sales revenue from home diagnostics, formulations and OTC businesses. The company’s expanding domestic reach assisted in achieving a higher topline in Q4 FY 2017-18. Domestic sales registered a growth of 52 per cent in Q4 at Rs. 122 crore. Exports sales, however, registered a decline of 35 per cent at Rs. 47 crore.

The bulk drugs (API) segmentcontributed around 60 per cent to the company’s total turnover in Q4 FY 2017-18. Morepen Lab’s bulk drug Montelukast Sodium has once again emerged as a growth accelerator for the company in Q4 FY 2017-18, followed by Rosuvastatin. Sales from Montelukast Sodium increased by 38 per cent in Q4 at Rs. 28.33 crore and sales from Rosuvastatin increased by 11 percent .

The Dr. Morepen basket, representing Home-Diagnostics category, did well during the quarter. In this category, Blood Pressure Monitors registered a maximum growth of 57 per cent in Q4 FY 2017-18 sales followed by Blood Glucose Monitors which recorded a growth of 26 percent. Looking at increasing incidence of diabetic cases in India, the Blood Glucose Monitors and Blood Pressure Monitors segment offers great opportunity for growth in the coming years. Total quarterly sales from this division stood at Rs. 24.71 crore in Q4 FY 2017-18, registering a rise of 29 per cent vis-a-vis corresponding quarter of the previous fiscal. The entire “Dr. Morepen” brand portfolio has recorded sales revenue of Rs. 77.01 crore in the quarter under consideration as against revenue of Rs. 57.25 crore in the corresponding quarter of the previous fiscal, recording a growth of 35 per cent. Sales from OTC (Over the Counter) products, comprising Burnol & Lemolate, went up by 21 per cent and from Formulations business by 44% in Q4 FY 2017-18..