Granules India Ltd., a vertically integrated formulation manufacturer, announced financial results for its fiscal year 2012 second quarter ended September 30, 2011. Granules consolidated net revenue increased 37% to Rs. 161 Cr. while PBT before exceptional items increased by 70% to Rs. 7 Cr.
Growth was driven by strong performances in all three divisions. The Finished Dosage division contributed Rs. 44.8 Cr., an increase of 114% over the prior year. Granules expects high growth in the division to continue as orders for its Ibuprofen and Metformin ANDA products continue to ramp up.
The API and PFI divisions had strong double-digit growth due to their usage in Finished Dosage sales and also because of increased demand from API and PFI customers.
We are proud of our top-line growth but are more excited that we were able to increase our PBT before exceptional items margin by 24% which demonstrates the strength of our business. Due to the depreciation of the Rupee, we incurred a Rs. 2.9 Cr. F/X adjustment, which is a non-cash expense that does not accurately reflect the improvement in our operations. The improvement in profitability is due to an increase in finished dosage and PFI sales along with higher efficiencies in our operations. In order to support our growth and improve profitability, our team is implementing systems to enhance the productivity of our existing facilities. Over the past year, we improved our metformin production by 110% to 2,000 tons per year. In addition to optimising our API capacity, we are on track to finish the expansion of our 8,000 tpa PFI module and 12 billion dose formulation module during Q4, which will be essential in filling our strong order book said Krishna Prasad, Managing Director of Granules India.