Granules India's profit boosted by drug ingredient making business

Alivus Life Sciences

16/05/2023 12:11

BENGALURU, May 16 (Reuters) - Granules India  GRAN.NS 
reported a 7.8% rise in fourth-quarter profit, spurred by strong
growth in its business of making active pharmaceutical
ingredient (API) for drugs.
    The company's consolidated net profit rose to 1.20 billion
rupees ($14.7 million) in the quarter ended March 31, from 1.11
billion rupees a year earlier.
    Granules's consolidated revenue from operations rose 16% to
11.96 billion rupees, but a 17% jump in its total expenses ate
into the profit growth.
    The company's revenue from finished dosages, its largest
division, rose 16% year-on-year, but that was easily outpaced by
its API segment, its second-biggest, where revenue jumped 48%.
    Granules reported a 38% jump in sales of paracetamol, which
is both an API and a ready-for-consumption drug it sells only in
the European Union.
    However, the company's biggest market is the United States,
from where it gets 31%. The drugs it sells in the country
includes skeletal muscle relaxant methocarbamol, whose sales
surged 60% in the quarter.
    Last month, Glenmark Life Sciences Ltd  GLEM.NS  posted a
48% rise in quarterly profit, driven by growth in its mainstay
API business.
    Granules's shares were down 1.6% after the results.
 
 ($1 = 81.7800 Indian rupees)

 (Reporting by Kashish Tandon; Editing by Sonia Cheema)
 ((Kashish.Tandon@thomsonreuters.com;))