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Granules India Q4 PAT at Rs128 Cr
May 11 2021 5:09PM
Granules India's consolidated net profit jumped 38% to Rs 128 crore on 33% surge in revenue from operations to Rs 799 crore in Q4 FY21 over Q4 FY20.  
 
Income from operations grew despite challenges posed by various business scenarios at the backdrop of COVID-19 and logistics disruption, resulting in shortage of raw materials and lower utilization capacities especially in Paracetamol. Growth was driven by new launches and an increase in the market share of existing products. This also compensated for the loss of the Merchandise Exports From India Scheme (MEIS) benefit earlier this year. 

On a consolidated basis, EBITDA for the quarter was up 102% Y-o-Y (year-on-year), growing 860 bps margin expansion on account of higher sales and volumes over a lower base of the previous year. The low base of the previous year was due to lockdowns and the export ban of Paracetamol. 

Operating profit soared 102% to Rs 202 crore in Q4 March 2021 from Rs 100 crore in Q4 March 2020. Operating margin rose to 25% in Q4 FY21 as against 175 in Q4 FY20. 

During the quarter, Granules India launched 2 new products, filed 3 ANDAs, 1 EU dossier and 1 product in Canada. The drug maker also received approvals for 6 ANDAs, 1 EU dossier and 1 Canadian dossier. During FY20, the company increased market penetration through existing approvals and new product launches contributed to growth in top-line. 

Among segments, Finished Dosages (FD) jumped 34.01% to Rs 461 crore in Q4 FY21 compared to Rs 344 crore in Q4 FY20. Pharmaceutical Formulation Intermediates (PFI) soared 84.61% to Rs 144 crore in Q4 March 2021 as against Rs 78 crore in Q4 March 2020. Active Pharmaceutical Ingredients (API) spurted 8.98% to Rs 194 crore in Q4 March 2021 as against Rs 178 in Q4 March 2020. 

Net debt fell by 5.1% Y-o-Y in FY21 over FY20. The board has recommended a final dividend of Rs 0.75 per equity share. 

Commenting on the Q4 results, Krishna Prasad Chigurupati, the chairman and managing director of Granules India, has said that: "I am very pleased with the performance across all our segments and geographies during the year. Multiple product launches across portfolios helped us to deliver a record high growth of 25% in sales. We also delivered a strong growth in profit, which is up 64% Y-o-Y. Despite unprecedented challenges over the past year, our robust performance demonstrates the unwavering commitment of our colleagues and the resilience of our business. We are investing for the next phase of growth across all verticals. I remain confident in Granules India's ability to continue to deliver on our stated goals to our stakeholders in FY2022 and thereafter, while remaining steadfast on ensuring the safety of our employees." 

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

Shares of Granules India lost 0.65% to Rs 361.80 on BSE. The stock traded in the range of Rs 350 to Rs 370.40 during the day.