(Reuters) – India’s MedPlus Health Services reported a surge in third-quarter profit on Friday, driven by store expansions and strong demand for over-the-counter medicines.
The company’s consolidated net profit more than tripled to 458.8 million rupees ($5.3 million) in the quarter ended Dec. 31.
MedPlus continued to benefit from strong sales of products under its private label brands in both the pharmaceuticals and consumer wellness categories, which analysts say contribute more to its margins.
The company’s revenue from operations rose 8.3% to 15.61 billion rupees, led by an 8% jump in its retail business.
While MedPlus does not break up its revenue from OTC medicines and devices, etc, they are all part of its retail business, which makes up nearly all of the company’s revenue.
The company currently has more than 4,000 outlets across the country, trailing only Apollo Pharmacy’s count of nearly 6,000 stores. Last year, MedPlus said it plans to open 600 stores to increase its presence in smaller cities.
MedPlus competes with Reliance Industries’ Netmeds and Apollo Pharmacy, both of which are unlisted, among other retail pharmacies in the Indian OTC drug retail market. ($1 = 86.5830 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Savio D’Souza)
