Morepen Labs Soars After Strong First-Quarter Results | Capital Market News

Last update: August 12, 2024 | 1:31 PM IST

Morepen Laboratories shares rose 4.70 per cent to Rs 60.86 crore after the company announced a consolidated net profit of Rs 36.17 crore for the first quarter of fiscal 2025, up 147 per cent from a net profit of Rs 14.63 crore in the first quarter of fiscal 2024.

During the period under review, net revenues increased by 14% year-on-year (YoY) to Rs 458.64 crore.

The company has a strong presence in the glucometers and blood pressure (BP) monitors market. In Q1 FY25, the medical devices business recorded revenue of Rs 138 crore, up 20% year-on-year.

Pharmaceutical segment revenue in Q1FY25 stood at Rs 320 crore, up 11% year-on-year and accounting for 70% of consolidated quarterly revenue for Q1FY25.

EBIDTA grew by 93% to Rs 55.05 crore in Q1FY25 from Rs 28.51 crore in Q1FY24.

Profit before tax in Q1FY25 stood at Rs 48.17 crore, up 135% from Rs 20.51 crore in Q1FY24.

Morepen Laboratories said that over the next 18 months, the company’s production capacity for blood glucose meters will be doubled from the current 2.5 million meters per year to 5 million meters, while its production capacity for test strips will increase from 500 million to 700 million strips per year.

The Company successfully completed QIP subscription of Rs 200 crores on 5th August 2024. The issue was oversubscribed by 1.68 times, indicating strong confidence among institutional investors.

Select global investors such as Bank of America Securities Europe (BOFA), Samsung India, Citigroup, Societe Generale, Nomura, BNP Paribas, Morgan Stanley and Eminence are some of them who have partnered with Morepen, paving the way for a promising future.

Sushil Suri, Chairman and Managing Director, Morepen Laboratories, commented on the QIP, stating, “This strategic fundraising marks a turning point in the company’s growth journey. With this infusion of fresh capital, we will accelerate our capacity expansion plans and broaden our market reach.”

Morepen Laboratories is a well-established player in the domestic and international Active Pharmaceutical Ingredients (API) market. It is also planning to enter the anti-cancer segment by considering the development of various potential candidates from the list of top 100 synthetic molecules. The company is also involved in home diagnostics, formulations and personal care products under the brand name GUBB.

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First published: August 12, 2024 | 12:44 PM IST