Granules India has reported strong growth in revenues during the second quarter ended September 2011 and its consolidated net sales increased by 36.8 per cent to Rs.161.40 crore from Rs.117.96 crore in the corresponding period of last year. Its EBDITA also moved up by 32.3 per cent to Rs.15.53 crore from Rs.11.74 crore. However, its net profit after foreign exchange adjustments, declined by 45.7 per cent to Rs.2.46 crore from Rs.4.53 crore in the similar period of last year. The company incurred foreign exchange loss of Rs.2.92 crore as against gain of Rs.1.92 crore.

Growth was driven by strong performances in all three divisions. The finished dosage division contributed Rs.44.8 crore, an increase of 114 per cent over the prior year. Granules expects high growth in the division to continue as orders for its ibuprofen and metformin ANDA products continue to ramp up. The API and PFI divisions ha strong double-digit growth due to their usage in finished dosage sales and also because of increased demand from API and PFI customers.

Krishna Prasad, managing director, said, “We are proud of our top-line growth but are more excited that we were able to increase our PBT before exceptional items margin by 24 per cent which demonstrates the strength of our business. Due to the depreciation of the rupee, we incurred a Rs.2.92 crore loss in foreign exchange, which is non-cash expense that does not accurately reflect the improvement in our operations. Over the past year, we improved our metformin production by 110 per cent to 2,000 tons per year. In addition to optimizing our API capacity, we are on track to finish the expansion of our 8,000 tpa PFI module and 12 billion dose formulation module during Q4, which will be essential in filling our strong order book.”

For the first half ended September 2011, Granules' consolidated net sales increased by 23.3 per cent to Rs.280.15 crore from Rs.227.29 crore in the similar period of last year. Its EBDITA surged by 13.6 per cent to Rs.27.82 crore from Rs.24.47 crore. However, its net profit declined by 13.3 per cent to Rs.5.59 crore from Rs.6.45 crore due to foreign exchange adjustments.