Granules India Ltd’s net profit increased 87 per cent to Rs 15 crore in the quarter ended September 30, compared with Rs 8 crore in the corresponding period last year, thanks to strong capacity utilisation.
The Hyderabad-based pharmaceutical company saw its revenue rise 52 per cent to Rs 266 cr during the quarter from Rs 175 crore in the year-ago period.
“Both revenue and net profit increased on healthy capacity utilisation and strong performance across all sectors,’’ said Harsha Chigurupati, Executive Director.
“We expect our margins to improve further as sales shift more to formulations and capacity utilisations levels increase.’’ As of now, formulations account for 40 per cent of sales, while active pharmaceutical ingredients (APIs) and pharmaceutical formulations intermediaries pool the rest.
The company has invested Rs 125 crore for expanding capacities of different product lines at its Gagillapur unit in Hyderabad, said V V S Murthy, Chief Financial Officer.
On the progress of its joint venture with Belgium-based Ajinomoto Omnichem to set up an API plant in Vizag at an investment of $20 million (around Rs 120 crore today), he said civil works were completed and trial production would commence next year.
Revenue from the venture would start adding up to Granules in two years, Murthy added.
EPS stood at Rs 7.34 against Rs 3.89 a year earlier.
Granules’ scrip closed marginally down at Rs 175.70 on the BSE on Wednesday.