Granules India Ltd.'s stock gained after its June quarter profit increased 36.6 percent, surpassing analyst estimates.
Net profit increased to Rs 39 crore in the first quarter, from Rs 28.5 crore quarter ended June 30, 2015, according to the company's filing on the Bombay Stock Exchange. The consensus estimate of analysts tracked by Bloomberg stood at Rs 34.7 crore.
Net sales rose 6.6 percent to Rs 343.5 crore from Rs 322.4 crore in the corresponding quarter last year. The topline fell short of consensus estimate of Rs 381 crore. Other income stood at Rs 2.28 crore.
Earnings before interest, taxes, depreciation and amortisation rose 9.2 percent to Rs 69.2 crore, while EBITDA margin expanded to 20.14 percent from 19.4 percent.
The management is betting on its new acquisition to drive growth in the U.S. market.
Granules Pharmaceuticals Inc., our U.S. based wholly owned subsidiary entered into an agreement with USpharma to acquire 12.5 percent 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.Krishna Prasad Chigurupati, Chairman and MD, Granules India (Source: Press Release)
The company's stocks rose as much as 2 percent to Rs 142 post earnings.
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