Paracetamol maker Granules India's profit drops as lower prices in US, Europe pinch
May 28 (Reuters) - Granules India (GRAN.NS), opens new tab reported a drop in fourth-quarter adjusted profit on Wednesday, hurt by weak pricing and stiff competition in its key European and North American markets.
Profit before exceptional items and tax fell to 1.67 billion rupees ($19.6 million) for the quarter ended March 31, from 1.76 billion rupees a year earlier.
The drugmaker logged a one-time gain of 307.5 million rupees related to an insurance claim it received during the reported quarter. Including the gain, consolidated profit rose 17%.
Granules, which generates about two-thirds of its revenue from North America and 19% from Europe, posted a 2% rise in its revenue from operations.
For further earnings highlights, click.
Granules, which holds a 30% share of the global paracetamol market, supplies the drug as an active pharmaceutical ingredient (API) and as a ready for consumption form in Europe, Canada, and South Africa. APIs are the active and key components in a drug that produce the intended therapeutic effects.
Indian API makers have been grappling with weak pricing in key European and North American markets due to tough competition, even as global drugmakers turn to India to limit their reliance on Chinese contractors.
PEER COMPARISON
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY TO MARCH STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 85.3790 Indian rupees
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