(Reuters) – India’s MedPlus Health Services 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 and Cipla’s 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’ 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)
