InvestorQ : Why have the profits of Granules India grow so sharply despite normal sales growth in the September 2022 quarter?
swati Bakhda made post

Why have the profits of Granules India grow so sharply despite normal sales growth in the September 2022 quarter?

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Sam Eswaran answered.
1 month ago
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For the quarter ended September 2022, the Hyderabad based Granules India reported 29.5% growth in sales at Rs1,151 crore on a consolidated basis. For the quarter, the company saw its revenue share of the US markets increase by a good 400 basis points to 57.8%. In terms of revenue mix, APIs (active pharma ingredients) contributed 20%, PFI 20% and finished dosages contributed the bulk of 51% of revenues. In Q2FY23, Granules filed for 2 ANDAs and 2 DMFs in the US and 3 CEPs. Granules has also got approval for 2 ANDAs during the current quarter ended in September 2022.

Granules India

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 1,150.73

₹ 888.33

29.54%

₹ 1,019.56

12.87%

Net Profit (Rs cr)

₹ 145.10

₹ 80.68

79.85%

₹ 127.57

13.74%

Diluted EPS (Rs)

₹ 5.82

₹ 3.24

₹ 5.13

Net Margins

12.61%

9.08%

12.51%

Let me now turn to the profit performance of Granules India. PAT for September 2022 quarter was up 79.85% at Rs145.10 crore while sequential profits were higher by 13.7%. On the back of better yields, the EBITDA growth was 61% on yoy basis while the profitability also got a boost from the EBITDA margins expanding by 400 bps yoy from 17% to 21%. Net margins at 12.61% in the Sep-22 quarter compared well with 9.08% in the Sep-21 quarter and 12.51% in June 2022 quarter. The return on capital employed or the ROCE increased by 320 basis points yoy to 25% in Q2FY23.

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