Granules India, a Rs.1,290 crore plus pharma major from Hyderabad, has posted satisfactory financial performance during the third quarter ended December 2015 and its consolidated net profit went up by 15.2 per cent to Rs.27.15 crore from Rs.23.56 crore in the corresponding quarter of last year. Its EBIDTA moved up 27 per cent to Rs.70.28 crore from Rs.55.32 crore. The company's consolidated net sales increased by 7.9 per cent to Rs.344.89 crore from Rs.319.67 crore. EPS worked out to Rs.1.32 as against Rs.1.16 in the last period.
The Board of directors recommended third interim dividend of 15 per cent. Despite higher profits and third interim dividend, Granules scrip declined by Rs.5.50 on BSE in the afternoon session today to Rs 114.80. The scrip touched to its yearly high level at Rs.164.55 in December 2015.
C Krishna Prasad, chairman & managing director, said, “During this phase of growth we are not only streamlining our strategies but also solidifying fundamental strengths of our business for attaining sustainable future growth. Though we have achieved a moderate top line growth in this quarter, the margin profiles have expanded through manufacturing efficiencies and optimisation of product mix. We expect our margins to further improve as our sales shift more to formulations, better capacity utilization and enhanced product basket with higher value products. While our growth as consolidated business might be slower than anticipated in the past, it is a part of a well thought out strategy, the results of which will be seen gradually increasing over the next few years.”
For the nine months ended December 2015, Granules consolidated net sales increased by 12.7 per cent to Rs.1,057 crore from Rs.938 crore in the similar period of last year. Its net profit moved up by 24.5 per cent to Rs.85.28 crore from Rs.68.51 crore. EBIDTA improved by 26.8 per cent to Rs.204.67 crore from Rs.161.43 crore. Its R&D expenditure increased to Rs.11.22 crore from Rs.2.10 crore and interest cost went up by 23.2 per cent to Rs.30.04 crore from Rs.24.37 crore. EPS for the nine months worked out to Rs.4.15 as compared to Rs.3.37 in the last period.
The company's equity capital increased to Rs.20.94 crore from Rs.20.43 crore in the last period as the company issued 87,678 equity shares of Re 1 each with the its employee stock option scheme and 40,95,230 equity shares against conversion of warrants to chairman and managing director. Funds received against issue of share warrants are being utilized for capital expenditure, working capital requirements and for investment in subsidiary companies.
The company's global presence extends to over 300 customers in 60 countries through offices in India, US, UK, China and Colombia.
Granules' standalone net sales for the nine months ended December 2015 increased by 8.8 per cent to Rs.975 crore from Rs.896 crore and its standalone net profit went up by 31.3 per cent to Rs.87.56 crore from Rs.66.71 crore.