Morepen Labs reports 24 per cent rise in net sales in first half of FY 2019-20

Morepen Laboratories has reported a net sales revenue (standalone) of Rs 383.30 crore in the half year ended September 30th, 2019, registering a growth of 24.2 per cent as compared to the net sales revenue of Rs 308.56 crore in the corresponding first half of the previous fiscal. Total Rrevenue (standalone) in first half stood at Rs 392.44 crore (Rs 313.06 crore) registering a jump of 25.4 per cent. EBIDTA was up by 31.8 per cent in H1’ FY 2019-20 at Rs 37.44 crores (Rs 28.40 crores) and cash profit during the same period was up by around 32.4 per cent at Rs 36.63 crores (Rs 27.67 crores).

The net profit before tax (standalone) almost doubled in the first half at Rs 18.10 crore compared to Rs 9.65 crore in the corresponding first half of previous fiscal. The net profit after tax (standalone) during the period stood at Rs 12.95 crore, up by 34.1 per cent from Rs 9.65 crore net profit registered in the corresponding period of FY’2018-19. The half yearly net profit has increased by a good 34 per cent despite a one-time hit of Rs 5.15 crore taken by the company by writing off MAT credit entitlement in line with the new Taxation Laws (Amendment) Ordinance 2019 in Q2 FY 2019-20.

The overall home diagnostic segment recorded total sales of Rs 85.55 crore in H1 FY 2019-20, registering a rise of 23 per cent vis-a-vis corresponding period of the previous fiscal. Blood glucose monitors and nebulisers recorded the highest growth in the half year at 33 per cent and 60 per cent, respectively. The combined sales revenue of the two devices in the half year increased to Rs 78.01 crore as compared to Rs 61.19 crore in the corresponding period of previous fiscal, registering a growth of 27 per cent. 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. In all, around 360 million glucometer strips have been sold by the company till date and blood glucose monitors installations have crossed 3.2 million target.

OTC business has recorded growth of 11 per cent in its sales revenue in H1 FY 2019-20. Isabgol and other small base brands grew by 36 per cent and 105 per cent respectively. OTC Business witnessed launch of many new products to its health basket including Active Smile, Dr Morepen Daily, MTP Kit, VCALCI, Clean & Pure, Liv Healthy, Head-X, Dr Morepen Aid, Dr Morepen Buds, COLD-EX, Paachan-Arishta and Adult Nasal Spray in various new product categories. New products are expected to add significantly to the company’s topline in the coming quarters.

The company has reported a net sales revenue (standalone) of Rs 196.60 crore in Q2’FY 2019-20, registering a growth of 23 per cent vis-a-vis net sales revenue of Rs 159.73 crore in Q2 FY 2018-19. Its EBIDTA in Q2 FY 2019-20 increased by seven per cent at Rs 17.71 crore and cash profit increased by 6.4 per cent at Rs 17.32 crore as against Rs 16.59 crore and Rs 16.28 crore, respectively, in the corresponding quarter of the previous fiscal.

The net profit before tax (standalone) for Q2 FY 2019-20 stood at Rs 9.69 crore, registering a rise of 36.4 per cent. However, as aforesaid, on account of the one-time hit of Rs 5.15 crores taken by the company during the quarter by writing off its MAT credit entitlement, the net profit after tax (PAT) decreased by 38 per cent at Rs 4.54 crore compared to Rs 7.29 crore in the corresponding quarter of the previous fiscal.