Morepen Labs Q3 revenue up by 29% with 14% jump in profit before tax

Diagnostic Devices business grew up by 7 percent at Rs. 93.66 crore in Q3 FY’ 22. Sales of Blood Pressure Monitors was up by 39 percent, whereas Blood Glucose Monitors revenue grew by 16 percent

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Mumbai: Morepen Laboratories Limited, a leading player in pharma and medical technology market, has reported successive outstanding performance by recording 29 per cent growth in its Q3 FY’22 quarterly revenues at Rs. 399.19 crore.
It has recorded 14 percent growth in its Quarterly Profit before Tax (Consolidated) at Rs. 27.14 crore, for the Quarter ended December 31st, 2021 whereas for nine months period, revenue growth of 30 percent and profit (before Tax) growth of 59 percent at Rs. 1185.67 crore and Rs. 112.53 crore respectively, were recorded.
The revenue growth in the quarterly revenues was backed by substantial jump of 41 percent in the API business at Rs. 232.95 crore, followed by OTC and Formulation business at Rs. 26.80 Crore and Rs. 42.08 crore, which grew by 46 percent & 23 percent respectively. Q3’FY22, Diagnostic Devices revenues at Rs. 93.66 crore grew by 7 per cent on Q-o-Q basis, whereas a remarkable revenue growth of 56 percent was recorded for nine months period ending December 31, 2021, at Rs. 350.71 crore.
EBITDA growth of 30 percent, over nine months period ending December 31, 2021, has been recorded at Rs. 125.12 crore while for Q3 FY’22 the company recorded 7 per cent Q-o-Q EBITDA growth, at Rs. 34.81 crore. However, Q3 FY’22 Cash Profits at Rs. 34.06 crore are up by 9 per cent. EBIDTA margin are down by 180 bps from 10.52 percent to 8.72 percent on account of growth in lower margin domestic API business and increased marketing spend across all business streams.
Profit before Tax (PBT) for Q3 FY’22 at Rs. 27.14 crore has gone up by 14 percent on Q-o-Q basis while PBT for nine months at Rs. 112.53 crore has moved strongly to 59 percent. The profit margin before tax is down by 87 bps from 7.67 percent Q3’FY21 to 6.80 percent in Q3’FY22.
Profit after Tax (PAT) for Q3’FY22 at Rs. 21.52 crore is down up by 10 percent on Q-o-Q basis while PAT for nine months at Rs. 89.36 crore is up by 27 percent. The profit margin before tax is down by 19 bps from 7.73 percent 9M’FY21 to 7.54 percent in 9M ’FY22.
Sushil Suri, Chairman and Managing Director stated, “Business is growing exponentially in all the segments and the company needs to put up additional capacities to serve the customers faster and also capture additional market share. We are working to augment the existing capital base to fund the upcoming growth”.
Suri further added, “The conversion of Bank’s Preference shares, outstanding since many years, into Equity capital is a big milestone and we are thankful to all the Banks for granting their approval. This was the last leg of the CDR process and company will have no outstanding liability in terms of unredeemed preference capital.”
Point of Care (POC) Medical Devices business at Rs. 350.71 crore registered a growth of 56 Percent in the nine months ended 31st December’ 2021 on strength of 68 percent revenue growth in Blood Gluco business at Rs. 232.33 crore and 64 percent revenue growth in Blood Pressure monitor revenue at Rs. 76.25 crore.
Blood Glucose Monitor business registered 16 per cent  revenue growth in Q3 FY’22 on a large base built over last many years which have recorded a CAGR of 41 percent in last 4 years,  while Blood Pressure monitor grew by 39 percent.The company has already achieved the leadership position in the Blood Glucose Meter and Blood Pressure Meter market and is aggressively increasing the reach to the tier-2 and tier-3 cities. The company has started to advertise in the electronic media and investing in marketing and promotion of blood Gluco monitors and blood pressure monitors.
During this period, 1.72 million Glucometers were installed, making to date glucometer installation to 6.75 million. During this nine months period, 64 million blood Gluco strips have been sold, making total Gluco measuring strips supply of 850 million strips till date. Towards glucometer’s installation and Gluco strips sales, a CAGR of 41 percent has been recorded during last 4 years.
The Medical Devices business is being moved into a 100% owned subsidiary, Morepen Devices Limited, as approved by shareholders on the Annual General Meeting on 28th September 2021 and will be operated as independent company while the revenues will be consolidated in the parent company.