Granules Q1 net profit up 134% at Rs 14.69 cr

Granules India Limited has reported a 134% jump in consolidated net profit at Rs 14.69 crore for the quarter ended June, 2013 on the back of higher revenues and the improved margins influenced by factors including the strengthening of dollar against the rupee during this period.

The company's net profit for the same quarter last year stood at Rs 6.27 crore.

The consolidated total revenues during the quarter under review grew by 25.23% to Rs 252.33 crore from Rs 201.74 crore in the corresponding previous quarter.

"Our results are a harbinger of what is to come for FY14. The fiscal year, particularly the second half, will be exciting for us as we continue to shift our sales to formulations as our production ramps up," Krishna Prasad, managing director of Granules India said in a statement.

The company maintained that the growth was driven by strong performance across all the three verticals, namely, finished dosages, pharmaceutical formulation intermediates and active pharmaceutical ingredients.

It said  the formulation expansion at the Gagilapur facility commenced operations during the quarter and the company expects to scale up production throughout the year as it receives customer approvals.

However, the company has apparently insulated the first quarter's balance sheet  from the adverse impact of exchange rate fluctuation on loans.

During the quarter a  loss of Rs 14.78 crore(loss of Rs 8.30 crore for the quarter ended June, 2013) was transferred to fixed assets as the company has opted to capitalise foreign currency gains and losses on loans utilised for purchase of fixed assets, the company said.