Granules net doubles

Hyderabad-based Granules India Limited reported a 100 per cent growth in net profit to Rs 6.27 crore for the quarter ended June, 2012, as compared with Rs 3.13 crore in the corresponding quarter last year on the back of higher gross profit margins.

Net sales grew 59.38 per cent to Rs 189.27 crore in the quarter from Rs 118.76 crore in the year ago period. The active pharmaceutical ingredient (API) business was up 92 per cent to Rs 56.9 crore followed by a 50 per cent jump in the pharmaceutical formulation ingredient (PFI) segment to Rs 52.6 crore during the three-month period.

Unlike the above two segments, the finished dosages business increased 35 per cent to Rs 49.6 crore because of capacity constraints in granulation units, according to company CEO Bhaskar Krishna. The increase in expenditure at 65 per cent, higher than the top line growth, was due to the increase in freight outward and clearing charges among other things.

The sales growth has come from the volume growth in all the key product areas, he said. The completion of the new manufacturing facility and the doubling of PFI capacity would add further upside both in finished dosages and other segments from the second quarter onwards.

C Krishna Prasad, managing director, said the company would be at around Rs 1,000 crore revenue mark by the end of next fiscal as compared with Rs 654 crore in the last financial year as new capacities come into play.