Granules India Q2 profit falls on weak demand in North America, Europe

Granules India

06/11/2024 08:18

Nov 6 (Reuters) - Drugmaker Granules India  GRAN.NS  reported a 4.8% fall in its second-quarter profit on
Wednesday, dragged by a slow demand in the North American and European markets.
    Consolidated profit fell to 972.3 million rupees ($11.54 million) for the quarter ended Sept. 30, from 1.02 billion
rupees a year earlier.
    Granules, which generates 66% of its revenue from North America and 19% from Europe, posted an 18.7% fall in its
revenue from operations.
    For further earnings highlights, (click here)



    KEY CONTEXT
    The company said its quarterly sales were impacted by a voluntary pause in manufacturing and distribution from its
Gagillapur facility near Hyderabad, which deals with finished dosage and pharmaceutical formulations, due to an
inspection by the U.S. Food and Drug Administration.
    The drugmaker's revenue fell due to weak sales and price cuts from competition, despite expectations that Indian
active pharmaceutical ingredient, or API, makers such as Granules would benefit from a rising demand in Europe and the
U.S.


    
    PEER COMPARISON
    
    
    
                                  Valuation (next 12      Estimates (next 12          Analysts' sentiment           
                                        months)                months)                                          
                         RIC      PE    EV/EBI  Price/   Revenue      Profit     Mean     # of      Stock to      Div
                                         TDA    Sales   growth (%)  growth (%)  rating*  analyst     price       yield
                                                                                            s       target**      (%)
   Granules India      GRAN.NS   19.49  11.50     -       14.87       36.32     Strong      3         0.85        0.27
                                                                                  Buy                           
    Glenmark Life      GLEM.NS   23.44  15.72     -       11.92       12.61       Buy       6         0.98        2.12
      Sciences                                                                                                  
     Laurus Labs       LAUL.NS   56.43  22.49     -       13.87       86.09      Hold      11         1.18        0.16
 Divi's Laboratories   DIVI.NS   65.63  46.64   15.77     15.93       26.45      Hold      23         1.29        0.52
 
    
    
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the
PT
    
    JULY-SEPTEMBER STOCK PERFORMANCE
**  
**
 
    -- All data from LSEG
    -- $1 = 84.2475 Indian rupees


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 (Reporting by Yagnoseni Das in Bengaluru; Editing by Rashmi Aich)