Granules India net up 87% at Rs 15 cr

Total income up 52% to Rs 267 cr

Hyderabad-based Granules India Limited reported an 87 per cent jump in net profit to Rs 15.11 crore for the quarter ended September 2013 on the back of higher revenues and improved profitability. The company, which produces formulation intermediaries and bulk drugs besides finished dosages, earned a net profit of Rs 8.08 crore in the same quarter last year.

Total income for the three-month period under review grew 51.67 per cent to Rs 266.54 crore as compared with Rs 175.74 crore in the corresponding previous quarter. Expenditure rose 49.08 per cent to Rs 238.78 crore due to a steep rise in raw material consumption and doubling of R&D expenses among others.

The company’s newly built formulation plant continues to scale up production adding to the topline growth. Gross profit margins increased this quarter by 241 basis points to 13.2 per cent while net profit margin grew 209 basis points to 6 per cent, according to Harsha Chigurupati, executive director of Granules. Chigurupati expects a 30 per cent growth in topline and more than 30 per cent growth in net profit during the current financial year.

Revenues in the first half of the current year ended September 2013 touched almost the Rs 500-crore level as compared with Rs 364 crore in the corresponding period last year. With additional capacities coming into use, it expects to reach the Rs 1,000-crore revenue mark, an important milestone for a mid-level company.