One sector which is getting most of the attention during the pandemic is the Pharma sector. The investors are keeping a track of which companies are moving in the direction of developing a COVID 19 vaccine. It is highly expected that the stocks of Pharma companies may provide good returns to the investor in the foreseeable future.

Granules India released their Q1 results for this financial year. The bottom line (net profit) increased by 34% to take the net profits at Rs 111.44 crore for the quarter which ended on 30th June 2020. Consolidated revenue worth Rs 735.59 crore was registered as compared to Rs 595.27 crore for the same period a year ago.

EBITDA or earnings before interest, taxes, depreciation, and amortization tells about the operating profitability and is one of the important financial measures for any company. This measure grew by more than 50% in this quarter.

Their results were welcomed positively by the market as their share price went up by 8%. Also, Granules have declared its first interim dividend of 25 paise per share which will boost earnings of shareholders, both in the form of a rise in share price and the dividend offered.

About Granules India

Hyderabad based drug firm, Granules India, is a vertically integrated pharmaceutical manufacturing company which has the vision to become a global leader in its domain. It was set up in 1984 and took only three years to become the second Indian company to export pharmaceutical products to the U.S.

They manufacture products across Active Pharmaceutical Ingredient (APIs), Pharmaceutical Formulation Intermediates (PFIs) and Finished Dosages (FDs). Few of the core products which the company manufactures are Paracetamol, Guaifenesin, Metformin and Ibuprofen.

What led to strong Q1 results?

Granules India was able to register this growth due to the robust increase in production and demand. The resumption of Paracetamol exports has boosted revenue growth in the last quarter. This quarter Granules Pharmaceutical Inc (GPI) launched two products: Colchicine tablets and Butalbital APAP caffeine tablets. These new products have been well received by the consumer. Also, the expansion of the market share of the existing products has contributed to higher revenues for the manufacturing company this quarter.

“This is the result of operational excellence and a vigilant watch over our margins through optimisation of the product mix and by increased capacities and optimal capacity utilisation.” – Granules India Chairman and MD Krishna Prasad Chigurupati

The street will be eagerly waiting for the results of other pharma companies who has seen a surge in demand in recent times.

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