Morepen Labs Q1 FY25 Profit Surges by 147%, Revenue Grows by 14% Morepen Labs successfully raised Rs. 200 Crore through QIP

Gurugram (Haryana), August 12, 2024: Morepen Laboratories Limited (NSE: MOREPENLAB, BSE: 500288), a leading player in the Medical Devices and Pharmaceutical businesses, announces its outstanding financial performance for Q1 FY2025. This announcement follows a week after the successful Rs. 200 crore fundraise through Qualified Institutional Placements (QIP) on August 5, 2024.

Highlights for Q1 FY25 • Net Revenue: Increased by 14% to ₹458.64 crore, up from ₹403.46 crore in Q1 FY24.

• EBITDA: Nearly doubled, rising 93% to ₹55.05 crore compared to ₹28.51 crore in the same quarter last year.

• Profit After Tax (PAT): Surged 147% to ₹36.17 crore, significantly higher than ₹14.63 crore in the corresponding period of the previous year.

• Earnings Per Share (EPS): Quarterly EPS stood at ₹0.71, marking a 147% increase from ₹0.29 in Q1 FY24. The trailing twelve months EPS is ₹2.30.

QIP Fund Raise: The company completed the subscription of a QIP for Rs. 200 crores on August 5, 2024. The issue was oversubscribed by 1.68 times, demonstrating strong confidence from institutional investors. Marquee global investors like Bank of America Securities Europe (BOFA), Samsung India, Citigroup, Societe Generale, Nomura, BNP Paribas, Morgan Stanley and Eminence are some of the select names that have partnered with Morepen, paving the way for a promising future.

Mr. Sushil Suri, Chairman and Managing Director of Morepen Laboratories, commented on the QIP: "This strategic fundraise marks a pivotal point in the company’s growth journey. With this fresh infusion of capital, the company can focus on its two growth engines – Medical Devices & Pharma – and reposition itself for growth in select categories with an end-to-end supply chain from manufacturing to marketing.” He added, “We will have an increased focus on research and backward integration, fostering innovation and cost reduction, thereby positioning the company as a reliable partner for global outsourcing in both the Medical Devices and Pharma sectors for export markets.” Quarterly Performance: Medical Devices: The company holds a strong position in the Blood Glucometers and Blood Pressure (BP) Monitors markets. In Q1 FY25, the devices business recorded revenue of Rs. 138 crore, marking a 20% growth year-on-year. Specifically, Glucometer revenues grew to Rs. 107 crore, and BP Monitors generated Rs. 26 crores, reflecting growth rates of 17% and 29% respectively on a year-on-year basis. The customer base for Glucometers is expanding steadily, with an installed base of over 12.34 million customers in the current quarter who regularly purchase strips, year after year. The company sold 117 million strips during the quarter, a 19% increase over the same quarter last year.

Mr.Suri, commenting on the quarterly performance, added, “We at Morepen, and India as a country, are at the inflection point of an expanding Medical Devices market unfolding with a new vision for India to become the manufacturing hub for Medical Devices. The Indian Medical Devices market is estimated to grow 4.5 times to $50 billion by 2030 from the current size of $11 billion and is expected to reach $250 billion by 2047, as per Invest India estimates. We are preparing to gain a major market share in the point-of-care medical devices sector.” Increased thrust to build large capacities: Blood Glucometer capacity would be doubled to 5.0 million meters per annum from the current 2.5 million meter, while strip manufacturing capacity will increase from 500 million strips to 700 million strips per annum within the next 18 months.

With an eye on reducing dependence on imports and lowering production costs, we continue to pursue backward integration; thereby helping the company in its endeavour to provide high-quality products at affordable prices. These backward integration initiatives have provided the company with enhanced control over the supply chain. The company has begun performing 'chip mounting' in-house using highly sophisticated, fully automatic, high-speed robotic SMT machines and now purchases only 'bare chips' from the market.

Pharmaceuticals: Pharma segment Q1 FY25 revenue at Rs. 320 crores registered a growth of 11% year-on-year, and it represents 70% of consolidated Q1 FY25 quarterly revenues. Export sales revenue at Rs. 178 crores increased by 32% on the strength of a 130% growth in exports to Europe followed by 15% growth in exports to Asia. The API business, having the largest share, led overall company revenues with a 14% increase, followed by a 7% growth in the formulation business.

Established molecules comprising Loratadine and Rosuvastatin, and new products comprising Sitagliptin, Saxagliptin and Linagliptin, helped drive revenue growth in Q1 FY25. API installed capacity is proposed to increase to 600 KL from the present base of 400 KL over the next 14-18 months. During the quarter, the Ministry of Health, Brazil granted a ‘Certificate of Good Manufacturing Practices’ valid until April 2026, to its Baddi API facility for the manufacture of Atorvastatin, Fexofenadine HCL and Loratadine.

About Morepen Laboratories Ltd.: (www.morepen.com) Established in 1984, Morepen Laboratories Ltd. is a leading player in the pharmaceutical and healthcare industry. Over four decades, Morepen has established a strong presence in medical devices and Active Pharmaceutical Ingredients (API). The company is known for its high-quality API products, exporting a substantial portion globally. Morepen leads in exporting six key APIs: Loratadine, Montelukast, Desloratadine, Atorvastatin, and Fexofenadine. In medical devices, Morepen has excelled, particularly in Point of Care (POC) diagnostics, expanding aggressively into tier-2 and tier-3 cities. Morepen has installed over 12.33 million glucometers and sold nearly 1.65 billion blood glucose strips.

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