Granules India Reports 39 Percent Profit Increase for Second Quarter

Drugmaker Granules India posted a 39 percent year-on-year jump in consolidated net profit to 181.8 crore rupees for the September quarter.

Revenue Growth

Revenue from operations grew 20 percent from a year ago to reach 1,559.9 crore rupees. Quarterly revenue crossed the 1,500 crore rupee mark with an EBITDA of 338 crore rupees despite rising input and logistics expenses.

Cost Pressures

Chairman and Managing Director Krishna Prasad Chigurupati stated that these cost pressures stem from tensions in West Asia and are expected to continue. The company plans to work with customers to handle these expenses with a lag. Meanwhile, the firm holds 828 crore rupees in net cash and intends to invest in research, manufacturing, and quality as it shifts toward complex generics and peptide CDMO.

Plant Inspection

Regarding the recent United States Food and Drug Administration inspection at the Gagillapur finished dosage unit in Hyderabad, management noted the review moved forward constructively. The regulator issued 11 observations, which the company aims to address through formal replies and corrective actions. On the Bombay Stock Exchange, company shares closed 2.38 percent higher at 819.55 rupees apiece on Monday.

Context

Drug manufacturers often face fluctuating input and freight expenses when global geopolitical tensions disrupt supply chains. Regulatory inspections by agencies like the United States Food and Drug Administration are routine checks to ensure manufacturing plants meet required safety and quality standards.