Granules Q4 net rises 8%, lower paracetamol API sales, price erosion impact revenue

Published - May 15, 2024 09:28 pm IST - HYDERABAD

Granules India CMD Krishna Prasad Chigurupati 

Granules India CMD Krishna Prasad Chigurupati  | Photo Credit: Arrangement

Drugmaker Granules India reported consolidated net profit for the fourth quarter ended March increased 8% year-on-year to ₹129.64 crore (₹119.60 crore) even as revenue from operations dipped 2%.

Decline in sales volume of paracetamol active pharmaceutical ingredient (API), coupled with price erosion, dragged down revenue from operations to ₹1,175.77 crore (₹1,195.5 crore).

Revenue share from the key North America market increased to 70% as against 58% in the year-earlier period, while formulations, including products manufactured by the U.S. subsidiary GPI, grew by 41%. APIs, pharmaceutical formulation intermediates and finished dosages contributed 14%, 13%, and 73% of revenue from operations respectively, Granules, which is one of the largest paracetamol makers, said on Wednesday.

For the fiscal ended March, consolidated net profit declined almost 22% to ₹405.31 crore (₹516.59 crore), while revenue from operations at ₹4,506.36 crore (₹4,511.91 crore) was a shade lower.

“We had a strong uptick in gross margin for the Q4 and for the full year, with continued growth in formulations share coming from the U.S. and Europe as part of our global expansion strategy and a higher contribution from new products,” CMD Krishna Prasad Chigurupati said in a release.

The fiscal year numbers were below expectations due to a cyber incident and low paracetamol demand, he said. In May 2023, the company had faced an information security incident that affected some of its IT assets and impacted the revenue and profitability of the company. A ransomware group had claimed responsibility for the incident.

₹1.50 dividend declared

The company has declared a final dividend of ₹1.50 per share (face value of ₹1) each for 2023-24. Shares of the drugmaker closed almost 1% lower at ₹396.15 on the BSE.

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