Granules India profit surges as higher sales outweigh cost pressures
Granules India profit surges as higher sales outweigh cost pressures Nov 2 (Reuters) - Indian drugmaker Granules India GRAN.NS reported a second-quarter profit rise of nearly 40% on Monday, as new product launches and strong sales of its main medicines in key overseas markets outweighed higher production costs.
Consolidated net profit for the quarter ended September 30 rose to 1.82 billion rupees ($19.19 million), compared to 1.31 billion rupees a year earlier.
Here are some more details:
Total revenue from operations rose 20.3% to 15.60 billion rupees, aided by strong North American demand, which accounted for 72% of total revenue
Total expenses rose 18.5%, with the cost of materials consumed jumping 23.2%
"Cost pressures will persist, and we are working with customers to manage them with a lag," said Prasad Chigurupati, chairman and managing director
Granules accounts for about a third of the world's paracetamol, serving over 80 countries with its 10 manufacturing plants, seven of them in India, two in the US and one in Europe
Analysts had previously expected newer product lines to drive sales, with US approvals and new launches seen as key for investors
($1 = 94.8550 Indian rupees)
(Reporting by Abhinav Parmar in Bengaluru; Editing by Harikrishnan Nair)
((Abhinav.Parmar@thomsonreuters.com;))
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