Granules Q3 net slips 10% despite rise in revenue

Hyderabad: City-based pharma player Granules India Ltd on Thursday said it has posted a 10.35% drop in consolidated net profit for the third quarter ended December 31, 2017, at Rs 35.02 crore from Rs 39.06 crore in the corresponding quarter of FY17.
This was despite a 14.26% jump in revenue from operations for the third quarter of FY18 at Rs 410.73 crore from Rs 359.47 crore in Q3FY17.
However, on a standalone basis, the company’s net profit fell by a little over 4% to Rs 33.84 crore during the quarter under review as compared to Rs 35.29 crore during Q3FY17 despite a 22% rise in revenue from operations at Rs 412.65 crore during Q3FY18 from Rs 337.38 crore
Commenting on the performance, Granules India chairman and managing director Krishna Prasad Chigurupati said: “Our journey towards sustainability continues as we report steady growth in our business performance. Revenue growth of 14% in the current quarter is the outcome of our investments in capacity expansion in both APIs and PFIs. However, increased cost for some of our key raw materials and forex fluctuation has impacted profit for the quarter under review.”
“Going ahead, we are optimistic of strengthening our growth by leveraging enhanced production capacities, until our new business initiatives start contributing positively as supplementary growth drivers of the company,” he added. The company’s board also approved a third interim dividend of 25 paise per share of face value of Rs 1 each.