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Shares of Morepen Laboratories soared 6.46 per cent at Rs 61.89 per share on the BSE in Monday’s intraday trade. The stock price surged after the company reported its April-June quarter of financial year 2024-25 (Q1FY25) on August 12, 2024.
For the first quarter of FY25, the company reported net revenue of Rs 458.64 crore, marking a 14 per cent increase, year-on-year (Y-o-Y) from Rs 403.46 crore in Q1FY24.
The company’s expenditure for the same period rose by 8 per cent to Rs 403.59 crore from Rs 374.95 crore a year earlier.
Earnings before interest, tax, depreciation and amortisation (Ebitda) rose by 93 per cent, reaching Rs 55.05 crore compared to Rs 28.51 crore in Q1FY24.
The company reported its cash surplus at Rs 53.89 crore from Rs 28.23 crore, up 91 per cent Y-o-Y in Q1 of FY25.
The company’s profit after tax (PAT) increased by 147 per cent, reaching Rs 36.17 crore, compared to Rs 14.63 crore in Q1FY24. The quarterly earnings per share (EPS) improved by 147 per cent to Rs 0.71 in the quarter under review from Rs 0.29 in the same quarter last year.
In Q1FY25, the medical devices business recorded revenue of Rs 138 crore, marking a 20 per cent growth Y-o-Y. The pharma segment on the other hand, reported revenue of Rs 320 crore, reflecting an 11 per cent year-on-year growth. This segment accounted for 70 per cent of the company’s consolidated quarterly revenues, the company said in a statement.
Morepen Laboratories also informed that it successfully completed a Rs 200 crore qualified institutional placement (QIP), which was oversubscribed by 1.68 times. Key investors included Bank of America, Samsung India, Citigroup, Societe Generale, Nomura, BNP Paribas, Morgan Stanley, and Eminence, signalling strong confidence in Morepen’s future, the company said in an exchange filing.
“This strategic fundraise marks a pivotal point in the company’s growth journey. With the influx of this new capital, we will accelerate our capacity expansion plans and broaden our market reach. With this fresh infusion of capital, the company can clearly 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,” said Sushil Suri, Chairman and Managing Director of Morepen Laboratories.
He further said that the company 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.
Morepen Labs is presently trading at a price to earnings multiple of 28.71 times, while trading at an earning per share (EPS) of Rs 2.02.
At 01:25 PM; the stock price of the company was trading 2.53 per cent higher at Rs 59.60 per share on the BSE. By comparison the BSE Sensex surged by 0.22 per cent at 79,877 levels.
First Published: Aug 12 2024 | 1:35 PM IST
