Granules India climbs after Q1 PAT jumps 34% to Rs 111 cr

Granules India rose 3.48% to Rs 254.50 after the company's consolidated net profit jumped 34% to Rs 111.44 crore on 23.6% increase in revenue from operations to Rs 735.59 crore in Q1 June 2020 over Q1 June 2019.

The company recorded profits of Rs 25.5 crore from both the divested joint ventures. Consolidated profit before tax (PBT) jumped 35% to Rs 149.18 crore in Q1 June 2020 over Q1 June 2019. Total tax expense rose 39% year-on-year to Rs 37.73 crore in quarter ending 30 June 2020. The result was announced during market hours today, 17 July 2020.

Consolidated EBITDA jumped 54.8% to Rs 183.60 crore in Q1 June 2020 from Rs 118.60 crore in Q1 June 2019. EBITDA margin improved to 25% in Q1 June 2020 compared with 19.9% in Q1 June 2019.

Commenting on the results, Krishna Prasad Chigurupati, chairman & managing director of Granules India said, "I am pleased to announce the highest ever quarter performance in the history of Granules India with a 23.6% YoY Revenue growth, an impressive EBITDA margin expansion of 503 bps and a YoY PAT growth of 93%. Our long-term investments in backward and forward integration from APIs to FDs are delivering expected results as demonstrated by new product launches and increase in market share of our existing products. This is the result of operational excellence and a vigilant watch over our margins through optimization of the product mix and by increased capacities and optimal capacity utilization. Our regulated markets (North America and Europe) contributed 71% of revenues in Q1FY21. Our first quarter performance gives us confidence that we are on track to end the year as per the plan, we expect to maintain our focus on delivering increased shareholder value."

Granules India is a growing pharmaceutical manufacturing company. It produces Finished Dosages (FDs), Pharmaceutical Formulation intermediates (PFls) and Active Pharmaceutical Ingredients (APIs) which gives the customers flexibility and choice.

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