Morepen Labs Q2 net profit up 38 pc to Rs 37 crore

Drug firm Morepen Laboratories on Thursday reported a 37.55 per cent rise in its consolidated net profit to Rs 37.36 crore for the quarter ended on September 30, 2021, on account of robust sales.

The company had posted a net profit of Rs 27.16 crore for the corresponding period of the previous fiscal, Morepen Laboratories said in a regulatory filing.

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Consolidated total income of the company stood at Rs 398.16 crore for the quarter under consideration. It was Rs 340.12 crore for the same period a year ago, it added.

"With massive increase in active pharmaceutical ingredient (API) demand globally and more particularly with frequent supply disruptions from China, we are putting our expansion plans for API on fast track," Morepen Laboratories Chairman and MD Sushil Suri said.

The company has planned to treble the API capacity from present 310 KL to 1000KL in the coming 24 months at the same site in Baddi (HP) within the same plant and at the additional land adjoining the site for which all approvals are in place, he added.

"We are very bullish on this expansion to capture this large spurt in demand APIs globally," Suri said.

API business registered a revenue growth of 9 per cent in the Q2 of FY22 on strength of increase in sales revenues of Montelukast and Atorvastatin and new molecules, the filing said.

The Point of Care medical devices business has registered a growth of 36 per cent in Q2 against corresponding quarter last year, it added.

"Finished dosage business has also registered a massive revenue growth of 28 per cent during the quarter by recording revenues of Rs 44.98 crore in Q2 as against Rs 35.17 crore achieved in the same quarter last year," Morepen Labs said.

Shares of Morepen Laboratories Ltd traded at Rs 52.30 on BSE, up 2.85 per cent from the previous close.