2 days ago
Granules Q1 net dips 16% to ₹112 crore, revenue up 3% as North America drives sales
Granules India's consolidated net profit for the quarter ended June declined more than 16% to ₹112.6 crore from the ₹134.6 crore a year earlier.
The lower net profit came on a nearly 3% increase in total revenue to ₹1,210.1 crore (₹1,179.8 crore). Sales growth was largely driven by North America. The decline in net profit was on account of exceptional items mainly expenses related to ongoing litigation settlements, the company said.
On a sequential basis, the net profit was 26% lower and total revenue 1% higher. Granules shares on Tuesday closed 3.17% higher at ₹455 apiece on the BSE.
Region wise revenue split showed sales in the all important North America market increased 7% to ₹929.7 crore (₹870 crore), while it was 12% higher in Europe at ₹167.3 crore (₹149.3 crore). In the Rest of World market, sales slumped 30% at ₹113.1 crore (₹160.6 crore), which the company said was primarily because of pharmaceutical formulation intermediate (PFI) supply backlog from the Gagillapur manufacturing facility, near Hyderabad, to LATAM market.
According to revenue split segment wise, contribution of active pharmaceutical ingredients segment for the paracetamol maker was 14% lower at ₹162.7 crore (₹189 crore); finished dosage marginally higher at ₹898.9 crore (₹891.2 crore); and PFI 20% more at ₹119.4 crore (₹99.7 crore).
'We delivered healthy cash flow from operations of Rs.280.6 crore this quarter and made good progress on the Gagillapur remediation programme. With our near-term formulations growth trajectory set to resume and the integration of Senn Chemicals through the Ascelis platform in the fast-growing CDMO sector, we are well-positioned for sustainable long-term growth,'CMD Krishna Prasad Chigurupati said.
