Granules

This Hyderabad company, maker of pharmaceutical compounds in granular form, posted a good set of numbers for Q1FY14 on the back of increased topline, higher other income a decrease in interest outgo.  The company posted a 21% rise in net sales at Rs.228 crore (YoY) and consolidated net profit rose 134% at Rs.15 crore. EBIDTA showed a 74% jump at Rs.32 crore. In terms of margins, EBIDTA margins soared 423 bps at 13.8% and PAT margin rose from 4.3% to 11.4%. The company had an other income at Rs.1.85 crore v/s Rs.19 lakh in Q1FY13. Interest outgo has come down 15%.

The numbers have been driven, apart from a YoY lower base effect, a robust growth in all its three verticals – its formulation expansion at Gagillapur facility commenced operations and once customer approvals start coming in, it hopes H2 will pan out much better.  Granules is into producing pharmaceutical formulation intermediates (PFIs), Active Pharmaceutical Intermediates (APIs) and off patent drugs. Its Gagillapur plant (a finished dosage unit) has a capacity of producing 6 million tonnes a year of PFIs.