Chairman and Managing Director of Granules India, Chigurupati Krishna Prasad
| Photo Credit: DEEPAK KR
Drugmaker Granules India reported consolidated net profit for the December quarter rose 1% to ₹125.6 crore, year on year, on a less than 1% increase in revenue from operations to ₹1,155.5 crore.
Active pharmaceutical ingredients, pharmaceutical formulation intermediates and finished dosages contributed 19%, 15% and 66% of revenue from operations, respectively. The focus on formulations sales has increased resulting in momentum shifting from API and PFI to formulations, the company said. Granules shares on Tuesday closed 1.27% lower on the BSE at ₹411.45 apiece.
“We had a steady performance this quarter as compared to the previous quarter. U.S. formulations business has done well in Q3, led by both existing and new products,” CMD Krishna Prasad Chigurupati said.
A significant volume growth in North America was partially offset by price erosion, while in Europe paracetamol price erosion led to a decline in sales. Volume decline continued in Latin America, primarily on account of inventory correction by customers in these regions, the company said. Granules is one of the largest manufacturers of paracetamol.
On a sequential basis, the revenue declined 3% which the company attributed primarily to reduction in prices of Paracetamol across all regions. The net increased 23% quarter on quarter fuelled by better value addition, which in turn was due to better product mix (increase in sales of formulations) coupled with reduction in prices of key raw materials.
