Paracetamol maker Granules India's Q2 revenue rises on higher N.America demand

Granules India

09/11/2023 10:17

BENGALURU, Nov 9 (Reuters) - Granules India  GRAN.NS 
reported a 3.4% rise in second-quarter revenue on Thursday as
the Paracetamol maker benefited from higher sales in North
America.
    The generic drug maker's consolidated revenue from
operations climbed to 11.89 billion rupees ($142.77 million) in
the three months ended Sept.30, from 11.51 billion rupees a year
earlier.
    Indian generic drug makers are expected to gain from new
product launches and easing price competition in the United
States, which accounts for the bulk of their revenue, according
to analysts. 
    Revenue from North America, the company's biggest market,
grew 11% to 7.99 billion rupees, but declined 8% in Europe to
2.13 billion rupees. 
    Shares of Granules India rose as much as 5% to 374.80 rupees
after the results. 
    The drug maker's net profit, however, dropped nearly 30% to
1.02 billion rupees ($12.25 million) from 1.45 billion rupees as
total expenses rose 9.3%. 
    Granules' three main segments, which focus on making active
pharmaceutical ingredients (API), pharmaceutical formulation
intermediates and finished dosages, accounted for 25%, 12%, and
62%, respectively, of revenue from operations. 
    The company, which holds a 30% share of the global market
for Paracetamol, makes the drug's API and finished dosage, ready
for consumption in European countries.
    Its shares gained 19.5% in the September-quarter,
outperforming the Nifty pharma index  .NIPHARM , which climbed
12%.
    Rival Glenmark Life Sciences  GLEM.NS  last month reported
an 11.1% rise in second-quarter profit.

 (Reporting by Rama Venkat in Bengaluru; Editing by Sonia
Cheema)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;
 +91 8095218099;))