Finished dosage growth helps Granules’ Q2
Granules has recently moved into supplying finished dosages, expanding on its traditional business producing active pharmaceutical ingredients (API) and intermediates, and it believes this will be the main driver of future growth.
In its latest results net sales of finished dosages grew by 69 per cent to Rs 10.2 crore ($2.19m). A large pharma contract, which uses 25 per cent of Granules’ finished dosage capacity, underpinned the growth and helped the division account for over 10 per cent of total net sales.
Krishna Prasad, managing director of Granules India, added that he expects “finished dosage production to increase even further and to continue to be a main driver for [Granules] growth”.
Granules finished dosage facility can produce 6bn tablets a year, scalable to 12bn, and its construction allows the company to offer services across the value chain. Prasad believes this vertically-integrated model is attractive to pharmas looking to outsource production.
Net profit increases 121%
The success of Granules’ finished dosage division helped its net profit increase by 121 per cent to Rs 6.07 crore. A breakdown of sales from the API and intermediate divisions is unavailable but record revenues, growing 18.4 per cent to Rs 96.4 crore, suggest a solid quarter.
Prasad noted that production rose across all areas of operations, highlighting in particular the intermediates unit at Jeedimetla, Hyderabad in central India “which had substantial increases in capacity utilisation”.
These improvements helped Granules increase its operating profit by 10 per cent to Rs 10.8 crore. Total expenditure rose by 20 per cent to Rs 85.7 crore.
