Granules India consolidated net profit declined 13% year-on-year to almost ₹111 crore for the quarter ended March even as revenue from operations of the drugmaker at ₹1,030 crore was 29% more from the year earlier period.
Adverse business condition arising out of supply constraints of Para Amino Phenol (PAP) as well as increase in price of other inputs and logistic charges were factors influencing the performance. Net profit margin dropped 5 percentage points to 11% during the quarter. On a sequential basis, the revenue, profit after tax and net profit margin were better.
For the full fiscal, net profit at ₹413 crore (₹550 crore) was 25% lower and came on a 16% increase in revenue from operations to ₹3,765 (₹3,238 crore). The net profit margin at 11% was a decline of six percentage points.
The company has declared a final dividend of 75 paise per share (face value of ₹1 each).
FY22 has been a challenging year for the industry in the face of adverse external environment with headwinds around the availability and price for raw materials, solvents, catalysts, uncertainties arising out of Ukraine-Russia conflict as well as re-emergence of COVID-19 cases in China, CMD Krishna Prasad Chigurupati said.
The global supply chain and logistics continue to remain under duress. Granules demonstrated great resilience in the face of these challenges and working on a long-term strategy on becoming self-sustainable to overcome most of the challenges, he said.
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