Net profit of Granules India rose 23.25% to Rs 124.33 crore in the quarter ended December 2022 as against Rs 100.88 crore during the previous quarter ended December 2021. Sales rose 14.98% to Rs 1146.13 crore in the quarter ended December 2022 as against Rs 996.77 crore during the previous quarter ended December 2021.

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The revenue growth was primarily driven by higher paracetamol API sales in the United States.

EBITDA improved by 33% to Rs 231 crore in Q3 FY23 from Rs 174 crore in Q3 FY22. EBITDA margin was 20% in Q3 FY23 as against 17% in Q3 FY22.

The company's revenue share from the USA increased to 49.4% in Q3 FY23 as compared to 43.1% YoY. Further, active pharmaceuticals ingredients (API), pharmaceutical formulation intermediates (PFI), and finished dosages contribute 35.8%, 18.6%, and 45.6% of revenue from operations respectively.

While operating cash flow was quite healthy at Rs 161 crore, free cash flow was negative at Rs 32.5 crore; impacted due to additional deployment of Rs 50 crore in our new expansion plan with green initiatives in Kakinada and Rs 42.5 crore for land acquisition in Vishakhapatnam.

Return on capital employed (ROCE) increased to 25.6% as compared to 21.2% YoY during the period under review.

Net debt stood at Rs 894 crore as against Rs 554 crore in Q2 FY23 and net debt to EBITDA stood at 0.98x. Increase in net debt was on account of reduction in cash due to buy back of shares and incremental capex for new initiatives.

Dr. Krishna Prasad Chigurupati, chairman & managing director of Granules India said, “In the current quarter we continued to cater to higher demand for Paracetamol. Opportunities in paracetamol are likely to continue and our geography expansion strategy in Europe is likely to yield higher turnover and EBITDA in future periods. We are also seeing a price and margin erosion in Q3 and expect similar trend in Q4.

In the current quarter we had changed our 3PL partner in USA to a better partner who has better automation and digital capabilities. However, during the transition we have suffered some sales loss in USA and that is the reason for better standalone financial performance as compared to consolidated financial performance. We expect that smoothening of the logistics in USA could take a quarter more.”

Meanwhile, Granules India said that its wholly-owned foreign subsidiary, Granules Pharmaceuticals has received approval from US Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA) Amphetamine Mixed Salts capsules; indicated for the treatment of attention deficit hyperactivity disorder (ADHD).

Granules India is a vertically integrated fast growing Indian pharmaceutical company. It is present across the entire manufacturing value chain - from active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates (PFIs), and finished dosages (FDs).

The scrip fell 0.26% to currently trade at Rs 311.30 on the BSE.

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Granules India announced today that the US Food & Drug Administration (US FDA) has approved the Abbreviated New Drug Application (ANDA) filed by Granules Pharmaceuticals, Inc (GPI)., a wholly-owned foreign subsidiary of the company, for Amphetamine Mixed Salts, 5mg, 10mg, 15mg, 20mg, 25mg, and 30mg Extended-Release (ER) capsules. It is bioequivalent to the reference listed drug product (RLD), Adderall XR® Extended-Release capsules of Takeda Pharmaceuticals USA Inc.

This product will be manufactured at Granules manufacturing facility in Chantilly, Virginia and is expected to be launched shortly.

Mixed Salts of a Single-Entity Amphetamine ER Capsules are indicated for the treatment of Attention Deficit Hyperactivity Disorder (ADHD).

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Mixed Salts of a Single-Entity Amphetamine extended-release (ER) capsules are indicated for the treatment of attention deficit hyperactivity disorder (ADHD). It is bioequivalent to the reference listed drug product (RLD), Adderall XR extended-release capsules of Takeda Pharmaceuticals USA Inc.

This product will be manufactured at Granules manufacturing facility in Chantilly, Virginia and is expected to be launched shortly.

The current annual U.S. market for Amphetamine Mixed Salts ER capsule product is approximately $1.56 Billion, according to MAT Nov 2022, IQVIA/IMS Health.

Granules now have a total of 53 ANDA approvals from USFDA (51 Final approvals and 2 tentative approvals).

Priyanka Chigurupati, executive director, Granules Pharmaceuticals, said, “We are pleased to receive the approval of Amphetamine Mixed Salts ER Capsules within 10-months of ANDA filing, which is an extended-release dosage form of controlled substance (C-II).”

Granules India is primarily involved in the manufacturing and selling of active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates (PFIs) and finished dosages (FDs).

The company's consolidated net profit soared 79.8% to Rs 145.10 crore on 29.5% jump in net sales to Rs 1,150.73 crore in Q2 FY23 over Q2 FY22.

The scrip rose 0.38% to Rs 313.30 on the BSE.

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