Morepen Labs Targets Rs 5,000 Crore Revenue By FY30
Morepen Labs aims for a 15% to 16% Ebitda margin over the next five years, and could achieve a margin of 20% in the longer run, its CMD suggested.
Pharmaceutical company Morepen Laboratories Ltd. is targeting a top line of Rs 5,000 crore by fiscal year 2030, along with Ebitda margins of 15% to 16% over the next five years, according to its Chairman and Managing Director Sushil Suri.
“API (active pharmaceutical ingredient) is our core business and is worth Rs 1,000 crore. It will keep growing between 8% to 10% CAGR. On the other hand, medical devices, despite ups and downs because of Covid-19, have grown at 15% CAGR," he said, during an interaction with NDTV Profit.
Suri pointed out that some of the major Indian pharmaceutical players have earnings before interest, tax, depreciation and amortisation, or Ebitda margins of 20% plus.
“Whether it is Cipla, Sun Pharma, Mankind, or Divi’s, their Ebitda margins are 20% plus, sometimes even 27%. We are not targeting 20% plus. I'm only saying 15% because we know that we still have a B2B portion, and we still have to invest in the growth part," he said.
But in long term, the company is to get to the margin of 20%, Suri said. "But in the first five years, we just want to remain in the high teens, that is 15%-16%. As compared to 27% to 28%, I think 15% is realistic, and it's a bundled margin."
Suri said that Morepen Labs is expanding its finished dosage segment to get closer to consumers. Currently, Morepen’s formulation business stands at approximately Rs 325 crore, and the company aims to achieve Rs 1,000 crore by fiscal 2030.
The company recently announced that it has hired 1,000 people to “catch the finished dosage revolution”, he said.
The top executive downplayed the impact of US tariffs on the company, as it has limited exposure to the US market.
“Fortunately for us, our US exposure is only 6%. So we just have Rs 100 to Rs 120 crores of export as against Rs 1,800 plus crores of revenue," Suri added.
