Granules India, a Rs.1,425 crore plus pharma major from Hyderabad, has achieved impressive growth of 36.5 per cent in consolidated net profit during the first quarter ended June 2016 to Rs.38.96 crore as from Rs.28.54 crore in the same period of last year. However, its net sales improved only by 6.6 per cent to Rs.343.50 crore from Rs.322.35 crore. EBDITA improved by 11.7 per cent to Rs.71.53 crore from Rs.64.05 crore. The board of directors recommended interim dividend of 20 per cent per share of face value of Rs.1 each.

Lower growth in sales put pressure on scrip movements and after the announcement of financial results, Granules scrip declined by 4.95 to Rs.134.55 on BSE. The scrip touched to its yearly high level at Rs.164.45 on December 1, 2015. EPS went up to Rs.1.80 from Rs.1.40 in the last period. The company has allotted 2.80 lakh equity shares of Rs.1 each, fully paid upon exercise of options by employees.

Krishna Prasad Chigurupati, chairman and managing director, said “Our top-line growth was slightly subdued but we have once again demonstrated our strength in operational excellence with improved bottom line. On business from, Granules Pharmaceuticals, Inc., our US based wholly owned subsidiary entered into an agreement with Uspharma to acquire 12.5 per cent of its stake. Uspharma in collaboration with its manufacturing partners had submitted five ANDAs with Paragraph IV certifications, out of which four ANDAs have already been out licensed to us exclusively. These are in line with our organizational strategy of solidifying our presence in the US market and enhancing product portfolio by leveraging both internal and external product development capabilities.”