The pharma-cum-healthcare major, Morepen Laboratories Ltd., has reported a yet another growth-filled quarter by registering a 23 per cent rise in its net sales in the third quarter (Q3) of fiscal 2016-17. The net sales increased to Rs. 134.05 crore in Q3 FY 2016-17 compared to Rs. 108.72 crore in the corresponding quarter of the previous fiscal.
Sales from the domestic operations contributed majorly to the company’s topline by registering a growth of 43 per cent at Rs.79.52 crore in Q3 FY 2016-17. Export sales, however, remained flat during the quarter at Rs. 54.53 crore, registering a marginal growth of 3 per cent.
The bulk drugs (API) segment continued to excel in the quarter by contributing 61 per cent to the company’s total turnover. Total sales from bulk drugs during Q3 FY 2016-17 stood at Rs. 81.83 crore. The two bulk drugs viz. Montelukast (an anti-asthmatic drug), and Rosuvastatin (a Statin drug), outshined other bulk drugs by registering a growth of 74 per cent and 44 per cent respectively in the Q3 FY 2016-17.
The Dr. Morepen basket, representing Home-Diagnostics category, did well too during the quarter. The company cemented its leadership position further in this category. The two major products in this category i.e. BP monitors and Blood Glucose monitors, showed an impressive growth of 28 per cent and 18 per cent respectively in Q3 FY 2016-17. Sales of Blood Glucose Meters alone stood at Rs. 10.14 crore during the quarter. The gross revenue from this business rose to Rs. 18.29 crore in Q3 FY 2016-17 compared to Rs. 16.23 crore in Q3 FY 2015-16.
OTC (Over the Counter) products and Formulations also recorded excellent sales nos. for the quarter under consideration. Burnol and Lemolate excelled in the OTC segment by registering a growth of 22 per cent and 46 per cent respectively in their sales in Q3 FY 2016-17. Total sales from OTC products went up by 46 per cent in Q3 FY 2016-17.
This was disclosed by Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd. after the company’s board meeting, which discussed and took on record the financial results of the company for the Q3 FY 2016-17 here on Wednesday. “This quarter, company’s focus was to get better penetration in the domestic market, which is quite visible from fabulous growth in API segment, particularly Montelukast, and Dr. Morepen OTC and Home Diagnostic segments. The growth in these segments had been very encouraging despite challenging market conditions,” he said.
Morepen’s net profit during the quarter stood at Rs. 4.27 crore and EBIDTA at Rs. 14.94 crore. The cash surplus (i.e. EBDTA) was lower in the quarter by 12 per cent at Rs. 12.70 crore vis-a-vis corresponding quarter in the previous fiscal.
The “Dr. Morepen” brand portfolio has recorded sales revenue of Rs.58.40 crore in the quarter under consideration as against revenue of Rs.43.03 crore in the corresponding quarter of the previous fiscal, recording a growth of 36 per cent.
During the nine months period ended December 31, 2016, Morepen Labs net profit grew by 18 per cent at Rs. 15.31 crore as against Rs. 13.01 crore net profit registered in the corresponding period of the previous fiscal. During the nine months period, net sales grew by 23 per cent at Rs. 388.53 crore. The total API business registered a growth of 24 per cent at Rs. 246 crore, Dr. Morepen Home Diagnostics business registered a growth of 24 per cent at Rs. 58.31 crore and formulations business 16 per cent at Rs. 21.56 crore.
The sales revenue of Gluco Monitors and Blood Pressure Monitors in the nine months period increased to Rs.42.52 crore as compared to Rs. 31.11 crore in the corresponding period of previous fiscal, registering a growth of 37 per cent. Looking at increasing incidence of diabetic cases in India, this segment offers great opportunity for growth in the coming years. The company is targeting to touch a base of one million installations of Glucometers this year and sell up to 5 million strips every month.
The entire “Dr. Morepen” brand portfolio has recorded sales revenue of Rs. 166.18 crore in the nine months period ended December 31, 2016, as against revenue of Rs. 124.57 crore in the corresponding period of the previous fiscal, recording a growth of 33 per cent.