Morepen Labs net profit rises by 125 per cent in Q4 FY 2018-19

New Delhi [India], May 6 (ANI/NewsVoir): Morepen Laboratories Ltd. has reported a steep 125 per cent rise in its net profit (Standalone) at Rs 9.22 crore and 31 per cent rise in its total revenue (Standalone) at Rs 207.10 crore in fourth quarter (Q4) of the financial year 2018-19. The company's net profit was at Rs 4.11 crore on total revenue of Rs 158.34 crore in the corresponding quarter of previous fiscal. The consolidated total revenue in Q4 FY 2018-19 went up by 28 per cent at Rs 219.74 crore. Export sales revenue in Q4 FY 2018-19 was up by 51 per cent at Rs 96.41 crore and domestic sales revenue up by 13 per cent at Rs 118.84 crore. In the export market, Montelukast exports have shown outstanding growth of 114 per cent and Rosuvastatin exports have recorded growth of 110 per cent in Q4 FY 2018-19. In the domestic market, the best performance came from Loratadine with 102 per cent growth in the quarter.

API sales revenue grew by 34 per cent at Rs 125.48 crore, home diagnostics sales revenue by 12 per cent at Rs 27.77 crore and formulation sales revenue by 30 per cent at Rs 49.35 crore. The company had peak outstanding debt of Rs 750.00 crores with multiple banks in FY'05 which was restructured through CDR scheme of RBI in 2006 with an upfront payment of OTS amount of Rs 150.00 crores. All the Loans have been fully serviced from internal cash accruals and there are no outstanding loan dues as on 31.03.19. The Company has cleared all its outstanding debt in the books to become a debt-free entity in fiscal 2018-19.

"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. Our increased focus on R&D and documentation for regulated markets has helped us build a strong pipeline of latest Anti-diabetic range of APIs focused at both international as well as domestic market. We remain committed to deploying more resources on our R&D initiatives," said Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd., after the Q4 and FY 2018-19 results' board meeting here on Saturday. Consolidated cash profit in Q4 FY 2018-19 was up by 27 per cent at Rs 21.85 crore. Consolidated Profit Before Tax (PBT) recorded extraordinary growth by 58 per cent at Rs 10.70 crore, up from Rs 6.78 crore in the corresponding quarter of previous fiscal. Consolidated Net Profit (PAT) also recorded growth of 54 per cent at Rs 10.49 crore during the period.

The bulk drugs (API) segment contributed around 58 per cent to the company's total turnover in Q4'FY18-19. Within the API segment, finished APIs have registered a growth of 26 per cent at Rs 111.03 Crores, Intermediates' 13 per cent at Rs 4.53 Crores whereas New Molecules' have added Rs 9.94 Crores to the company's top line, thanks to relentless efforts of the R&D team. Blood pressure monitors recorded a growth of 61 per cent and nebulisers registered a whopping growth of 406 per cent in their respective sales revenue in Q4'FY18-19. Looking at the increasing incidence of diabetic cases in India, the blood glucose monitors and blood pressure monitors segment offers a great opportunity for growth in the coming years. Total quarterly sales from this business stood at Rs 27.77 crore in Q4'FY18-19 vis-a-vis Rs 24.71 crore in the corresponding quarter of the previous fiscal. Sales from OTC (Over the Counter) products were down by 5 per cent in Q4'FY18-19.

In the entire FY 2018-19, Morepen Laboratories Ltd. has reported total revenue (Standalone) of Rs 720.91 crore registering a jump of 28 per cent. The net profit (Standalone) during the year stood at Rs 28.61 crore, up by 10 per cent from Rs 26.12 crore net profits registered in FY 2017-18. Consolidated total revenue has grown by 27 per cent at Rs 772.21 Crore. Consolidated PBT in FY 2018-19 was lower by 1.4 per cent at Rs. 29.18 crore and Consolidated net profit were lower by 2.5 per cent at Rs 28.84 crore compared to that of FY 2017-18. During the year, there was increased cost pressure due to an extraordinary increase in prices coupled with shortages of various raw materials imported from China. This has materially affected the profitability of the company in the last three quarters. However, despite this, there has been a good growth of business in all segments.

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