Paracetamol maker Granules India posts marginal rise in Q3 profit

Alivus Life Sciences

23/01/2024 09:20

BENGALURU, Jan 23 (Reuters) - Drug maker Granules India
 GRAN.NS  reported a marginal rise in third-quarter profit on
Tuesday, helped by easing raw material costs.  
    The company's consolidated profit rose 1.6% to 1.26 billion
rupees (nearly $15 million), according to an exchange filing.
        Granules has seen slowing profit growth since the third
quarter of 2022. It reported a fall in profit for the past two
quarters as it grappled with soaring costs. 
  
        The company reported a 0.6% climb in expenses for the
third quarter, helped by a 7% fall in raw material costs. In
contrast, expenses ranged between 9% and 17% in the last four
quarters.
  
        This resulted in a flat profit margin year-on-year at
11%.
  
    Revenue rose 1% to 11.56 billion rupees, with the fixed
dosages segment contributing 66% to the total.
        Granules, which focuses on making active pharmaceutical
ingredients (API), holds 30% of the global market for
Paracetamol. It makes the drug's API and finished dosage, the
ready-for-consumption product.
  
    Shares of the company rose as much as 3.2% after the results
before paring some gains to trade 2.9% higher. 
    They climbed about 14% in the December quarter,
outperforming a 9% rise in the Nifty Pharma index  .NIPHARM . 
    Rival Glenmark Life Sciences  GLEM.NS  is also expected to
report its third-quarter results on Tuesday. 

($1 = 83.0900 Indian rupees)

 (Reporting by Manvi Pant and Kashish Tandon in Bengaluru;
Editing by Sonia Cheema)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))