Drugmaker Granules India reported consolidated net profit increased 6% to ₹128 crore in the quarter ended June even as growth across all geographies and segments pushed up revenue from operations 20% to ₹1,020 crore.
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U.S. pricing pressure as well as increased cost of raw materials, solvents and logistics remain challenges, CMD Krishna Prasad Chigurupati said. Active pharmaceuticals ingredients (API), pharmaceutical formulation intermediates and finished dosages accounted for 23%, 23% and 54% of revenue respectively.
“While overall geopolitical environment is far from being normal, we must take these in our stride and execute Granules 2.0 strategy without any flaw. I feel confident when I see the transformation taking place... [and] we continue to grow and demonstrate excellence and differentiation in whatever we do,” he said.
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In a release on the Q1 performance, Granules said it had acquired capital assets of a small biotech company to gain ready platform for biotechnology focused research and manufacturing. The company had also received approval from the Centre’s Department of Pharmaceuticals under the Production Linked Incentive scheme to manufacture Dicyandiamide (DCDA).
Buyback approved
The company has approved a buyback of 62.50 lakh equity shares (face value of ₹1) at a price of ₹400 each for an aggregate maximum amount of ₹250 crore.
The Board has fixed August 23, 2022 as the record date for determining the entitlement and names of equity shareholders eligible to participate in the buyback.