Granules India Q2 PAT spurts 71% to Rs 164 cr

The pharma company reported 70.8% jump in consolidated net profit to Rs 164 crore on a 22.7% rise in income from operations to Rs 858 crore in Q2 FY21 over Q2 FY20.

The company said that the rise in revenue was mainly on an account of new launches and increase in market share of existing products across the three verticals.

Operating profit surged 78.6% to Rs 256 crore in Q2 September 2020 from Rs 144 crore in Q2 September 2019. Operating profit margin was at 29.9% as on 30 September 2020 as against 20.5% as on 30 September 2019.

The company's net debt fell 25.8% year-on-year (YoY) and net debt to EBITDA stood at 0.7x.

The company's board of directors have recommended a second interim dividend of Rs 0.25 per share of face value of Re 1 each and have fixed 30 October 2020 as the record date for the same.

Commenting on the results, Krishna Prasad Chigurupati, chairman & managing director of Granules India, said "I am pleased to announce second consecutive robust performance by all our business segments, fuelled the 22.7% growth in Q2FY21 revenues to Rs 858 crore. Our long-term investments in backward and forward integration from APIs to FDs are helping us in delivering expected results as demonstrated by the 22% growth in our FDs revenue at Rs 430 crore this quarter, led by the new products launch and increase in market share of our existing products and increased penetration of PFIs leading to 33% growth at Rs 173 crore. API revenue at Rs 255 crore, up 17% YoY, was driven by acquisition of new customers. The consolidated EBITDA for Q2 stood at Rs 256 crore, up by 78.6% and net profit at Rs 164 crore grew by 70.8% YoY. Our second quarter performance gives us confidence that we are on track to end the year as per our stated objectives and we will continue to deliver superior shareholder value.

Granules India is a growing pharmaceutical manufacturing company. The company produces finished dosages (FDs), pharmaceutical formulation intermediates (PFIs) and active pharmaceutical ingredients (APIs) and has global presence that extends to over 250 customers in 60 countries.

The scrip was almost flat at Rs 391.50 on the BSE. It traded in the range of 383 and 405 so far during the day.

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