Granules India hits 52-week high after strong Q3 earnings

Granules India surged 6.36% to Rs 223.30 at 14:25 IST on BSE after consolidated net profit jumped 275% to Rs 21.80 crore on 46% growth in net sales to Rs 284.10 crore in Q3 December 2013 over Q3 December 2012.

The Q3 result was announced during trading hours today, 28 January 2014.

Meanwhile, the S&P BSE Sensex was down 13.78 points or 0.07% at 20,693.67.

On BSE, so far 1.63 lakh shares were traded in the counter as against average daily volume of 34,122 shares in the past one quarter.

The stock hit a high of Rs 228.20 so far during the day, which is also its 52-week for the counter. The stock hit a low of Rs 208.40 so far during the day. The stock had hit a 52-week low of Rs 90.15 on 22 March 2013.

The stock outperformed the market over the past one month till 27 January 2014, surging 5.56% compared with the Sensex's 2.29% fall. The scrip had also outperformed the market in past one quarter, jumping 24.53% as against Sensex's 0.12% rise.

The small-cap company has equity capital of Rs 20.28 crore. Face value per share is Rs 10.

Granules India's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) surged 140% to Rs 45.50 crore in Q3 December 2013 over Q3 December 2012.

Granules India attributed the strong Q3 earnings to strong performance across all manufacturing facilities including the formulation facility at Gagillapur which continued to scale-up production. In addition to strong revenue growth, the company's profitability margins strengthened in Q3 December 2013 over Q3 December 2012. The EBITDA margin increased by 630 basis points to 16%, while the PAT margin increased by 470 basis points to 7.7% YoY in Q3 December 2013.

Commenting on the company's financial performance, Krishna Prasad, MD, Granules India said, "We have increased revenue and PAT four quarters in a row which is why our revenue for the first nine months surpassed our FY 2013 revenue and more importantly, our PAT is 58% higher than last year's total. Our standalone operations continue to strengthen and I believe our numbers reflect the potential of our business. While we are proud of our accomplishment, our primary focus continue to be improving manufacturing efficiency so we can deliver unparalleled value to our customers".

Granules India is a fast growing pharmaceutical manufacturing company with world class facilities. The company produces finished dosages (FDs), pharmaceutical formulation intermediates (PFIs) and active pharmaceutical ingredients (APIs). The company has presence in 60 countries.

Powered by Capital Market - Live News