India's MedPlus Health Q2 profit more than doubles on strong demand

MedPlus Health Services

08/11/2023 11:41

BENGALURU, Nov 8 (Reuters) - India's MedPlus Health
Services  MEDP.NS  reported an over two-fold rise in
second-quarter profit on Wednesday as growing share of the
pharmacy helped drive retail sales.
    The Indian omni-channel retail pharmacy said consolidated
net profit jumped to 145.6 million rupees ($1.8 million) for the
three months ended Sept. 30 from 65.7 million rupees a year
earlier.
    The over-the-counter (OTC) drugs market in India is expected
to grow at an annual rate of ~19% to 10.80 billion rupees by
2027, according to analysts, driven by a number of factors,
including rising population and better affordability among
consumers. 
    The launch of new patented drugs and improving medical
infrastructure have further improved access to these medicines,
driving sales of retail pharmacies, the analysts added. 
    A series of price hikes have also boosted revenue.  
    MedPlus, which delivers medicines online as well as through
its nearly 4,000 retail outlets across the country, said revenue
from operations rose nearly 26%, outweighing a nearly 25% rise
in expenses, mainly due to higher input costs.  
    Revenue from its retail business, which contributed 99% to
the total, jumped nearly 25% to 13.90 billion rupees, while
revenue from its diagnostics business more than tripled to 181.5
million rupees.
    MedPlus competes with Reliance-owned  RELI.NS  Netmeds and
Apollo Pharmacies among other retail pharmacies in the Indian
OTC drugs market. 
    MedPlus shares ended flat ahead of the results. 

($1 = 83.2640 Indian rupees)

 (Reporting by Kashish Tandon in Bengaluru; Editing by Sohini
Goswami)
 ((Kashish.tandon@thomsonreuters.com))