This was disclosed by Mr. Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd. after the company’s board meeting, which discussed and took on record the fourth quarter and annual results of the company for the financial year 2015-16. “After attaining leadership in Loratadine, by being world’s largest generic supplier of the bulk drug, Morepen Laboratories Ltd. has attained a leadership in its second molecule Montelukast,” he pointed out.
Morepen Laboratories Ltd. has reported an over 25-fold increase in its net profit for the financial year ended March 31, 2016. The net profit increased from Rs. 58 lakhs in FY 2014 -15 to Rs. 15.78 crore in FY 2015-16. The total operating revenue in FY 2015-16 stood at Rs. 452.46 crore as against Rs. 370.26 crore in the previous fiscal, registering a growth of 22.20 per cent.
For the fourth quarter ended March 31, 2016, net profit rose to Rs. 2.77 crore on a total operating revenue of Rs. 123.59 crore as compared to a loss of Rs. 3.72 crore on a total operating revenue of Rs. 85.36 crore in the corresponding quarter of the previous fiscal.
Morepen’s EBIDTA increased by 36.30 per cent in fiscal 2015-16 at Rs. 65.38 crore and the cash surplus (i.e. EBDTA) rose by 40 per cent at Rs. 54.96 crore compared to Rs. 47.95 crore and Rs. 39.31 crore respectively, in the previous fiscal.
“Enhanced focus on cost reduction and adoption of innovative processes resulted in this remarkable turnaround, putting the company back on the profit trajectory,” Mr. Suri said.
Q4 marked excellent performance in all business segments particularly bulk drugs (API) which has grown by more than 50%, while Home Diagnostics and Finished Dosages segments also outperformed and registered a remarkable growth of 35% and 40% respectively adding to the outstanding quarterly performance.
Total revenues from the bulk drug Montelukast in Q4 grew by more than 90% at Rs. 25.71 crore. Thus, Montelukast registered the highest growth amongst bulk drugs followed by Loratadine and Atorvastatin, which grew by 20% and 37% respectively, over Q4 last year. In the FY 2015-16, total revenue from Montelukast crossed Rs. 74 crores and is likely to cross Rs. 100 crore mark in fiscal 2016-17.
Exports: With strategic international positioning, the company’s export turnover has crossed Rs. 200 crores in FY 2015-16, registering a growth of 32 per cent. The exports turnover is expected to grow by 25% Year-on-Year and is likely to cross Rs. 250 crore in fiscal 2016-17.
In the home health category, Morepen’s Diagnostics division grew by 23% Year-on-year. The company cemented its leadership in Blood Glucose Monitors market by registering 41% growth in fiscal 2015-16 with a top line of Rs.33.38 crores. It sold more than 30 million test strips in fiscal 2015-16. Looking at increasing incidence of diabetic cases in India, this segment offers great opportunity for growth in the coming years.