Drugmaker Granules India reported consolidated net profit declined 31% to ₹101 crore for the December quarter on the back of increase in freight cost and lower gross margins. The lower net profit, compared with ₹147 crore in the year earlier, came on an 18% increase in income from operations to ₹997 crore (₹845 crore). The company has declared an interim dividend of 25 paise per equity share of ₹1 each.
Granules in a release said shortage of containers pushed up the freight cost by ₹29 crore, while the overall gross margin recorded is lower in percentage terms due to change in Segment mix in total revenue. Share of Finished dosage has come down from 57% in Q2 to 46% in Q3 due to higher inventory build-up at USA and year end.
“We are slowly getting back to the normal as evident from the revenue growth which came in despite continuing disruptions and challenging environment such as raw material price increase, unstable supply from China and PAP supply constraints. We expect the situation to improve in coming quarters and remain focused on execution and agile to the market opportunities,” CMD Krishna Prasad Chigurupati said.
He said Granules was ready to take a leap to transform the business to the next level by strengthening management capabilities and investing in research and development infrastructure, scientific talent, and partnerships in science and technology, which would lead to sustainability, leadership, backward integration and focus on quality of our portfolio. “Our initiatives will bring in the triple bottom line in the form of social, environmental, and financial advantages resulting in a greater stakeholder’s value,” he said.
For all the latest business News Click Here
