Morepen Laboratories on Tuesday said its net profit declined 9.54 per cent to Rs 21.52 crore in the third quarter ended December 31, 2021.
The drug maker had reported a net profit of Rs 23.79 crore in the same period of previous fiscal year.
Net revenue however rose to Rs 399.19 crore in the third quarter as compared with Rs 310.26 crore in the same period of 2020-21, Morepen Laboratories said in a statement.
"Business is growing exponentially in all the segments and the company needs to put up additional capacities to serve the customers faster and also capture additional market share. We are working to augment the existing capital base to fund the upcoming growth,” Chairman and Managing Director Sushil Suri said.
The company said its board has approved the allotment of compulsorily convertible preference shares (CCPS) to banks, financial institutions and others in place of optionally convertible preference shares (OCPS) and cumulative redeemable preference shares (CRPS) of Rs 114.65 crore held by them as part of the company’s loan restructuring programme.
The new preference shares shall be converted into equity shares as per the Sebi formula within a maximum period of 18 months from the allotment date, it added."The conversion of bank’s preference shares, outstanding since many years, into equity capital is a big milestone and we are thankful to all the banks for granting their approval. This was the last leg of the CDR process and company will have no outstanding liability in terms of unredeemed preference capital,” Suri stated.