Granules India Q4 Results: Profit Rises 8%, Misses Estimates

Net profit grew 8% to Rs 130 crore in the quarter ended March, compared with Rs 120 crore in the year-ago period.

<div class="paragraphs"><p>Various types of colorful pills arranged for photograph. (Source: freepik)</p></div>
Various types of colorful pills arranged for photograph. (Source: freepik)

Granules India Ltd.'s consolidated net profit rose in the fourth quarter of fiscal 2024, but missed analysts' estimates.

Net profit grew 8% to Rs 130 crore in the quarter-ended March, compared with Rs 120 crore in the year-ago period, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had estimated a profit of Rs 158.68 crore.

Granules India Q4 FY24 Results Highlights (Consolidated, YoY)

  • Revenue down 2% to Rs 1,176 crore versus Rs 1,196 crore. (Bloomberg estimate: Rs 1,279 crore).

  • Ebitda rose 12% to Rs 256 crore versus Rs 229 crore (Bloomberg estimate: Rs 279.30 crore).

  • Ebitda margin at 21.8% versus 19.1% (Bloomberg estimate: 21.80%).

  • Net profit rose 8% to Rs 130 crore versus Rs 120 crore (Bloomberg estimate: Rs 158.68 crore).

Performance Highlights

  • Formulations growth, including Granules Pharmaceuticals Inc. manufactured products, was offset by decline in Para API sales volume and price erosion.

  • Achieved a higher value-added percentage compared to quarter ended March 2023, attributed to a higher finished dosages sales and lower raw material cost.

  • Improved value-added percentage led to a better Ebitda percentage in three months to March 2024, despite increase in research and development spends.

  • Increase in interest rate impacted PAT of the quarter under review.

“We had a strong uptick in gross margin for the Q4 and for the full year, with continued growth in formulations share coming from US and Europe as part of our global expansion strategy and a higher contribution from new products," said Dr Krishna Prasad Chigurupati, chairman and managing director of Granules India.

While the fiscal year numbers were below expectations due to cyber incident and low paracetamol demand, the company is excited about the way its strategies for the future are playing out and looks forward to the upcoming years, Chigurupati said.

Shares of company were trading 0.025% higher at Rs 399.85 apiece on the NSE at 1:39 p.m., as compared with a 0.16% decline in the benchmark Nifty 50.