Morepen Laboratories reports 16.43 per cent rise in net profit for FY 2019-20

EBIDTA, cash profit (consolidated) for FY 2019-20 also went up by around 9.6 per cent, 10 per cent at Rs 78 crore, Rs 76.02 crore, respectively

Morepen Laboratories has reported a 16.43 per cent rise in its net profit (consolidated) at Rs 33.58 crore. Net consolidated revenue during the year rose by 11.7 per cent at Rs 862.55 crore. The company’s net profit was Rs 28.84 crore on a net revenue of Rs 772.21 crore in the previous fiscal.

• Q4 FY 2019-20 numbers remain stable despite lock down in last two weeks of the financial year
• Company expands its portfolio with a wide range of new and promising products in personal hygiene and protection segments

Highlights (FY 2019-20 and Q4 FY 2019-20)

• Net profit after tax (consolidated) for FY 2019-20 was up by 16.43 per cent at Rs 33.58 crore and that for Q4 FY 2019-20 by 5.1 per cent at Rs 11.02 crore.
  
• Net revenue (consolidated) for FY 2019-20 stood at Rs 862.55 crore as against Rs 772.21 crore in FY 2018-19, registering a rise of 11.7 per cent. This growth was mainly on account of a consistent growth in sales of Bulk Drugs (APIs), Diagnostic Devices and OTC products during the financial year.
  
• Net revenue (consolidated) for Q4 FY 2019-20 was marginally down by 5.2 per cent at Rs 208.39 crore.
  
• EBIDTA and cash profit (consolidated) for FY 2019-20 also went up by around 9.6 per cent and 10 per cent at Rs 78 crore and Rs 76.02 crore, respectively.
  
• Net profit before tax (consolidated) for FY 2019-20 was up by 34.04 per cent at Rs 39.11 crore and that for Q4 FY 2019-20 by 6.17 per cent at Rs 11.36 crore.
  
• Export sales revenue for FY 2019-20 increased by 10 per cent at Rs 343.24 crore due to high impetus on API business. In the export market, Rosuvastatin exports have shown good growth of 30 per cent.
  
• Domestic sales revenue for FY 2019-20 went up by 11.75 per cent at Rs 496.36 crore. In the domestic market, best performance came from Atorvastatin with 94 per cent growth.
  
• API sales revenue for FY 2019-20 grew by 14.74 per cent at Rs 473.95 crore.
  
• Home diagnostics sales revenue grew by 20.46 per cent at Rs. 168.35 crore. Blood glucose monitors’ sales jump up by 29 per cent and nebulisers’ by 44 per cent.
  
• Branded formulation sales revenue jumped by 18.62 per cent for FY 2019-20 at Rs 40.64 crore.
  
• OTC business sales revenue shown a good growth of 18.84 per cent at Rs 64.63 crore with grooming business recording a growth of 58 per cent.
  
• The company launched a wide range of non-contact infrared thermometers, oximeters, hand sanitisers, hand rubs, hand wash, anti-bacterial spray, anti-bacterial soap, disinfectant solutions, face masks, gloves, Vitamin-C gummies for kids, multivitamins, chyawanprash and curcumin tablets to fight COVID-19 at ground level.
  
• The company also got ISO-13485 certification for its medical devices manufacturing facility at Baddi (HP) from BSI (British Standards Institution, UK).
  
• The company has recently got the license to manufacture Hydroxychloroquine (HCQ). The drug, being prescribed for treatment of COVID-19 patients in India and abroad, is currently undergoing commercial trials.

The EBIDTA (consolidated) for FY 2019-20 rose by 9.6 per cent at Rs 78 crore and the cash profit (consolidated) by 10 per cent at Rs 76.02 crore. Consolidated profit before tax (PBT) recorded extraordinary growth by 34 per cent at Rs 39.11 crore, up from Rs 29.18 crore in the previous fiscal.

Company’s consolidated net revenue in Q-4 FY 2019-20 was marginally down by 5.2 per cent at Rs 208.39 crore due to COVID-19 lockdown effect in last two weeks of March 2020. Consolidated net profit in Q4 FY 2019-20 was up by 5.1 per cent at Rs 11.02 crore. consolidated profit before tax (PBT) recorded growth of 6.2 per cent at Rs 11.36 crore, up from Rs 10.70 crore in the corresponding quarter of previous fiscal.

This was disclosed by Sushil Suri, Chairman and Managing Director, Morepen Laboratories, after the Q4 and annual FY 2019-20 results’ board meeting. “The company has achieved good growth and smoothly sailed through the difficult business challenges posed by the Novel Coronavirus 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.”

The consolidated domestic sales revenue in Q4 FY19-20 was up by 3.43 per cent at Rs 122.55 crore and export sales revenue was down by 16.35 per cent at Rs. 80.64 crore. API business exports got a hit in last two weeks of March due to COVID-19 lock down situation which was compensated by excellent sales performance in April and May 2020. API business was down by 9.79 percent in Q4 FY 19-20 compared to corresponding quarter of the last fiscal. Home diagnostics business was not impacted by lockdown in March and registered exemplary growth of 43.79 per cent with blood glucose monitors’ sale recording a jump of 78 per cent in this tough situation in Q-4 FY 19-20. The company launched non-contact infrared thermometers in the month of April 2020. Branded formulation also registered growth of 9.48 percent in Q-4 FY 19-20 vis-à-vis corresponding quarter of the previous fiscal. OTC business also launched Burnol antiseptic solution and antiseptic spray, anti-bacterial solutions and sprays, This segment achieved extraordinary growth of 30.97 percent in Q4 FY 19-20 with branded OTC recording a whooping growth of 72 per cent. Generics formulation witnessed a major shortfall of 40.24 per cent in Q4 FY 19-20.