Granules India Ltd - Q2 FY 21 RESULTS REVIEW - DT 20 10 2020

 

Granules India Ltd

Q2 FY 21 RESULTS REVIEW

DT 20 10 2020

 

Granules  India  is  a  growing  pharmaceutical  manufacturing  company  with  best-in-class  facilities  and  is committed to operational excellence, quality and customer service.

The Company produces Finished Dosages (FDs), Pharmaceutical Formulation Intermediates (PFIs) and Active Pharmaceutical Ingredients (APIs) which gives the customers flexibility and choice.

Granules support customers with unique value, extensive product range, and proactive solutions.

The Company’s global  presence  extends  to  over  250  customers  in  60 countries through offices in India, U.S., and U.K.

The Company has 6 manufacturing facilities out of which 5 are located in India and 1 in USA.

Five of these have regulatory approvals from the USFDA, EDQM, EU GMP, COFEPRIS, WHO GMP, TGA, K FDA, DEA, MCC and HALAL.

Q2FY21 Revenues up 22.7% YoY to INR 858 Crs

EBITDA at INR 256 Crs, up 78.6% YoY;

EBITDA Margin at 29.9%

PAT at INR 164 crs, up 70.8% YoY

Granules India Ltd., has announced its earnings for the quarter ended September 30, 2020.

Q2FY21 Financial Highlights (All numbers in INR Cr except Margins)

CONSOLIDATED FINANCIALS (Q2 FY21)(Q1FY21)(Q2FY20) Growth (YoY)

Income from Operations (Rs.858Cr) (Rs.736Cr)(Rs.700Cr)(22.7%)

Gross Profit (Rs.497Cr)    (   )     (Rs.340Cr)(46.1%)

Gross Profit Margin (57.9%)  (   )  (48.6%)

Operating Profit (Rs.256 Cr)    (    )    (Rs.144Cr)(78.6%)

Operating Profit  Margin (29.9%) (20.5%)

PAT  (Rs.164Cr)    (Rs.111Cr)    (Rs.96Cr)(70.8%)

Net Profit Margin (19.1%)    (    )     (13.7%)

BASIC EPS(FV Rs.1) : (Rs.6.60)(Rs.4.39)(Rs.3.77)

Equity : Rs.24.76 cr

other Equity :1883.82 cr

Total equity : 1908.58 cr

MP :392

PE : Rs.392 MP /(4 Qtrs * Rs.6.6 Q2 EPS) = 14.85

Net cash generated from operating activities (A) (HY1FY21:+194.39 Cr) (HY1FY20 :+224.72 Cr)

Net cash used in investing activities (72.63 Cr) (-113.82 Cr)

Net cash used in financing activities (-234.90 Cr) (-92.79 Cr)

Cash and Cash equivalents at the end of the period : (+Rs.217.83 Cr) (+Rs.101.13 Cr)

 

Q2FY21 Financial and Business Highlights

q Revenue from operations in Q2FY21 grew by 22.7% YoY, mainly on an account of new launches and increase in market share of existing products across the three verticals

q EBITDA for the quarter grew 78.6% YoY;EBITDA margin improvement due to changing product mix and increased operational efficiencies

q PAT for the quarter stood at INR 164 Cr up 70.8%

q Net Debt down by 25.8% YoY and Net debt to EBITDA stood at 0.7x

q Launched 1 product through Granules Pharmaceuticals Inc. during the quarter

q ANDA/Dossier approvals:4 ANDA/dossier approvals received during the quarter

q Granules Pharmaceuticals Inc. received US FDA approval for Ramelteon Tablets, 8 mg

 Granules Pharmaceutical Inc received USFDA approval for the complex, Attention Deficit Hyperactivity Disorder (ADHD) Drug, Dexmethylphenidate HCl extended-release capsules

Granules India Limited received USFDA approval of Naproxen Sodium and Diphenhydramine Hydrochloride Tablets, 220 mg/25 mg (OTC)

The Company’s Board of Directors have recommended a second interim dividend of 25paise per share of face value of Re. 1 each.

Commenting on the results,Mr. Krishna Prasad Chigurupati, Chairman & Managing Director of Granules India Limited, said

"I am pleased to announce second consecutive robust performance by all our business segments, fuelled the 22.7% growth in Q2FY21 Revenues to INR 858 Cr.

Our long-term investments in backward and forward integration from APIs to FDs are helping us in delivering expected results as demonstrated by the 22% growth in our FDs revenue at INR 430 Cr this quarter, led by the new products launch and increase in market share of our existing products and increased penetration of PFIs leading to 33% growth at INR 173 Cr. API Revenue at INR 255 Cr,up 17% YoY, was driven by acquisition of new customers.

The consolidated EBITDA for Q2 stood at INR 256 Cr,up by 78.6% and Net Profit at INR 164 Cr grew by 70.8%YoY.

Our second quarter performance gives us confidence that we are on track to end the year as per our stated objectives and we will continue to deliver superior shareholder value.”