Granules' Q4 net jumps 85.7%

Hyderabad-based drug maker Granules India Limited has reported a 85.7 per cent jump in net profit to Rs 16.37 crore for the quarter ended March 2012, more than half of the full year's bottom line, as compared with Rs 8.81 crore in the corresponding quarter of last year. Net income from sales grew 56.9 per cent to Rs 188 crore, as against Rs 119.9 crore during the same period a year ago.

The exceptional growth in top line and the bottom line during the quarter under review has been attributed to the change in the accounting policy that allowed the company’s revenues to flow into the last quarter of the year, in addition to robust growth in finished dosage sales, which grew 85 per cent to Rs 185 crore among other segments for the full year.

The upside in the net profit during the fourth quarter also comes on the back of a Rs 7.85-crore accrual in foreign exchange gain, which has been almost nominal for the full year.

For the full year ended March 2012, the company has posted a 43.34 per cent rise in net profit to Rs 30 crore, as against Rs 20.89 crore in the previous year, while revenues increased 37.63 per cent to Rs 654 crore from Rs 475 crore in the previous fiscal.

With export-oriented unit (EOU) benefits to the company’s manufacturing facilities ending in FY 11, a 13 per cent hike in tax rates was added to the overall tax liabilities for the year, which otherwise would have added about Rs 3 crore to the profits, according to C Krishna Prasad, managing director of Granules India.

The board of directors of the company has declared a 20 per cent dividend for the year.