Granules India Net Profit Increases by 8.3% in Q4, dividend at 150%

Granules India, a Rs. 4,500 crore pharma major, has posted single digit growth in consolidated net profit during the fourth quarter ended March 2023 to Rs. 120 crore from Rs. 111 crore in the corresponding quarter of last year. Its revenues increased by 16 per cent to Rs. 1,196 crore from Rs. 1,030 crore mainly due to higher sales in US and Europe. EPS worked out to Rs. 4.94 as compared to Rs. 4.48.

The board of directors recommended equity dividend of Rs. 1.50 per share of face value of Re 1. The company’s sales in US moved up by 31 per cent to Rs. 641 crore from Rs. 490 crore in the similar period of last year and that in Europe moved up by 29 percent to Rs. 287 crore from Rs. 222 crore. Its sales in India and LATAM declined by 19 per cent and 42 per cent respectively to Rs. 68 crore and Rs. 72 crore. Sales in Canada increased by 13 per cent to Rs. 55 crore from Rs. 49 crore and that in RoW moved up by 18 per cent to Rs. 72 crore from Rs. 61 crore during the similar quarter of last year.

The company had spent nearly Rs. 14 crore more in R&D in Q4FY23 as compared to Q3FY23 to invest in future growth drivers and fuel innovation-driven R&D projects Dr Krishna Prasad Chigurupati, chairman and managing director, commented on the results, saying, "We have grown in terms of revenues year on year as well as sequential quarter despite price erosion challenges in our key geographies, including the US." When compared to FY22, our cash flow from operations has improved significantly this year. This demonstrates the strength of our company and will also assist us in funding our green initiatives in the coming quarters and years. In the future, we will take a more sustainable approach, and all of our efforts and plans will be geared towards that." Granules’ sales during the year ended March 2023 increased by 19.9 per cent to Rs. 4,512 crore from Rs. 3,764 crore in the previous year. Its EBITDA moved up strongly by 27 per cent to Rs. 914 crore from Rs. 722 crore and net profit went up by 25.2 per cent to Rs. 517 crore from Rs. 413 crore.

EPS improved to Rs. 21.05 from Rs. 16.66 in the last year. API sales for granules increased by 38% to Rs. 1,341 crore from Rs. 975 crore in the same quarter last year, while PFI sales increased by 7% to Rs. 902 crore. The sales of finished dosages increased by 17% to Rs. 2,268 crore from Rs. 1,944 crore. API, PFI, and FD sales contributed 31%, 18%, and 51% of total revenue, respectively. Its sales in the United States increased by 30% to Rs. 2,378 crore from Rs. 1,825 crore, while sales in Europe increased by 29% to Rs. 1,021 crore from Rs. 790 crore in the same period last year. New packaging facility in Virginia, USA partially commercialized and received FDA approval. It will help the company to improve working capital cycle and reduce uncertainty of Sales.

The company received total 24 ANDA/Dossier from US FDA and 5 approvals from Europe. Its products are being distributed to over 300 plus customers in regulated and semi-regulated markets with a global presence extending to over 80 plus countries with offices across India, US, and UK. The company has 7 manufacturing facilities out of which 6 are in India and 1 in the USA and has regulatory approvals from US FDA, EDQM, EU GMP, COFEPRIS, WHO GMP, TGA, K FDA, DEA, MCC, and HALAL. The company has setup a wholly owned subsidiary called "Granules CZRO”, to establish the Integrated Green Pharmaceutical Zone (GPZ) in Kakinada, Andhra Pradesh in partnership with Greenko. The company is planning to invest Rs. 2,000 crore next 5 years. In FY 23, it had invested Rs. 93 crore in CZRO towards land and in FY24, it is planning to invest Rs. 250 crore.