Drugmaker Granules India reported June quarter consolidated net profit almost tripled to ₹134.64 crore, from ₹47.89 crore in the year earlier, while revenue from operations rose almost 20% to ₹1,179.86 crore.
“We are back on our planned trajectory after a few setbacks last year. Q1 performance highlights include continued growth in our formulation segment, strong North America business and product diversification, which offset the paracetamol API/PFI decline,” Chairman and Managing Director Krishna Prasad Chigurupati said.
A robust quarterly performance, it promises a brighter future driven by the formulations offering and new product pipeline, he said in a release on Tuesday. Revenue share from North America during the quarter increased to 74% compared with 61% a year earlier.
Sequentially, however, the first quarter performance was muted. For the January-March quarter, the company had reported a consolidated net profit of ₹129.64 crore and revenue from operations of ₹1,175.77 crore. Continued growth in finished dosages (FD) segment was offset by a decline in paracetamol active pharmaceutical Ingredient/pharmaceutical formulation intermediates (API/PFI) sales volume and impact of price erosion. The value add was also sequentially lower, which the company attributed to product mix.
The Hyderabad-headquartered Granules, which is in the manufacturing of entire value chain, from APIs, PFIs and FDs and has 10 manufacturing facilities – eight in India and two in the U.S., had reported an almost 22% decline in net profit last fiscal to ₹405.31 crore (₹516.59 crore) on revenue from operations that was a shade lower YoY at ₹4,506.36 crore (₹4,511.91 crore).
The company had attributed the below expectation numbers to a cyber incident and low paracetamol demand. In May 2023, Granules had faced an information security incident that affected some of its IT assets and impacted revenue and profitability. A ransomware group had claimed responsibility for the incident.
The company’s shares rose 4.15% to close at ₹587.80 apiece on the BSE.
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