Granules India, a Rs.475 crore pharma major from Hyderabad, has reported strong financial performance during the third quarter ended December 2011 and its consolidated net profit went up by 41.9 per cent to Rs.7.99 crore from Rs.5.63 crore in the corresponding period of last year. EBDITA reached at Rs.25.59 crore from Rs.14.65 crore, representing a growth of 74.5 per cent. Its consolidated net sales also increased by 45.1 per cent to Rs.185.72 crore from Rs.128 crore. With improved profitability, its earnings per share moved up to Rs.3.98 from Rs.2.81 in the last period.

The finished dosage division, which grew by 61 per cent was bolstered by strong demand for the rapidly growing Metformin market in the US and European market. The pharmaceutical formulation intermediate (PFI) division grew 52 per cent due to an increase in Ibuprofen and paracetamol sales. The API division had double-digit growth due to usage in finished dosages and PFIs along with increasing demand for the its APIs.

The company invested around Rs.100 crore in the current fiscal year to triple its finished dosage capacity to 18 billion units and more than double its PFI capacity to 18,000 tons. The new capacity will enable Granules to meet the increasing demand for its products and increase its annual growth rate.

Krishna Prasad, managing director, said, “We have successfully gained market share because customers appreciate our blend of quality, customer service and value. While our results were rewarding, we are eagerly looking towards opportunities over the next few quarters. We have strong demand for our products and expect our annual growth rate to accelerate with the addition of our new capacity.”

For the first nine months of 2011-12, Granules net sales grew by 31.1 per cent to Rs.465.88 crore from Rs.355.29 crore in the similar period of last year. Its net profit moved up by 12.3 per cent to Rs.13.57 crore from Rs.12.08 crore.