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

MedPlus Health Services

12/11/2024 11:06

Nov 12 (Reuters) - India's MedPlus Health Services
 MEDP.NS  reported a sharp jump in second-quarter profit on
Tuesday, propelled by strong demand for over-the-counter (OTC)
medicines.
    The company reported consolidated net profit of 387.4
million rupees ($4.6 million) for the quarter ended Sept. 30,
compared to 145.6 million rupees a year ago.
    Its revenue from operations rose 12% to 15.76 billion
rupees, led by an about 11% jump in its retail business, which
accounts for nearly all of its total revenue.
    The company did not specify the sales break-up of
over-the-counter and prescription medicines, both of which are
part of the retail business.
    Drugmakers Mankind Pharma's  MNKI.NS  and Cipla's  CIPL.NS  
domestic revenues were boosted by strong demand for OTC
medications, the companies said in their second-quarter earnings
statements.
    MedPlus Health said in September that it plans to increase
its presence in tier-2 cities by opening 600 new stores over the
next three years.
    The company currently has more than 4,000 outlets in the
country, just behind Apollo Pharmacy, which has more than 6,000
stores.
    It also said it is focussing on increasing the scalability
of products under its own private label in both pharmaceuticals
and consumer wellness categories, which according to analysts
contributes more to its margins.
    MedPlus competes with Reliance Industries'  RELI.NS  Netmeds
and Apollo Pharmacies, both of which are unlisted, among other
retail pharmacies in the Indian OTC drug retail market.

($1 = 84.3670 Indian rupees)

 (Reporting by Kashish Tandon in Bengaluru and Varun H K)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))