Granules India Q4FY21 results: Consolidated profit rises 39% YoY to Rs 128 crore

Granules India on Tuesday, May 11, 2021, announced its financial reports for the period ended March 31, 2021. The pharmaceutical company has reported a 39.1 per cent year-on-year (YoY) rise in the consolidated profit at Rs 128 crore for the period ended March 31, 2021. It had reported a profit of Rs 92 crore in the same quarter of the last financial year.

Consolidated revenue from operations grew 33.2 per cent to Rs 799 crore in the period under consideration against Rs 600 crore posted last year. The EBITDA grew 102 per cent to Rs 202 crore against Rs 100 crore posted last year. The EBITDA margin improved to 25.3 per cent in Q4FY21 against 16.7 per cent reported in Q4FY20.

The company has reported EPS of Rs.5.13 for the period ended March 31, 2021, as compared to Rs.3.62 for the period ended March 31, 2020.

Commenting on the results, Mr. Krishna Prasad Chigurupati, Chairman & Managing Director of Granules India Limited said, "I am very pleased with the performance across all our segments and geographies during the year. Multiple product launches across portfolios helped us to deliver a record high growth of 25 per cent in sales. We also delivered a strong growth in profit, which is up 64 per cent YoY. Despite unprecedented challenges over the past year, our robust performance demonstrates the unwavering commitment of our colleagues and the resilience of our business. We are investing for the next phase of growth across all verticals. I remain confident in Granules India's ability to continue to deliver on our stated goals to our stakeholders in FY2022 and thereafter while remaining steadfast on ensuring the safety of our employees."

Financial and Business Highlights for FY2021

FY21 income from operations at Rs 3,238 crore, record growth of 25 per cent YoY. EBITDA stood at Rs 855 crore, a growth of 63 per cent YoY. EBITDA margins stood at 26 per cent. PAT at Rs 549 crore a growth of 64%.

Increased market penetration through existing approvals and new product launches contributed to growth in the top-line.

Gross Margins moved mainly on account of higher PFI and FD volumes, which have grown by around 50 per cent over the previous year.

EBITDA improved mainly on the back of higher volumes and new launches. Our operational efficiencies, in combination with our added capacities, have increased our FD volumes by nearly 50 per cent which translated into higher EBITDA. In addition to this, our focus on our product rationalization based on profitability enabled us to achieve this growth.

During the year, the Pharmaceutical Formulation Intermediates (PFI) segment grew 49 per cent YoY, the Active Pharmaceutical Ingredients (API) segment grew 12% YoY and Finished Dosage (FD) grew 25 per cent YoY.

High contribution from FD continues to grow in absolute terms from Rs 1,360 crore in FY20 to Rs 1,699 crore in FY21 up 25 per cent YoY.

PFI grew 49 per cent YoY from Rs 421 crore in FY20 to Rs 626 crore in FY21, on the back of increased market penetration and the addition of new customers.

API grew 12 per cent YoY due to new customer additions.

Strong growth momentum witnessed across geographies.

Withdrawal of the MEIS scheme in H2FY21 had an impact of Rs 39 crore on profitability.

Net Debt down by 5.1 per cent YoY.

As of March 2021, net debt to EBITDA stood at 0.7x vs. 1.2x as of March 2020.

ROCE stood at 30.7 per cent, up significantly on account of higher capacity utilization. Capacity increases came through quickly via the addition of new modules and equipment with limited capital expenditure.

During the year, launched 12 new products, filed 5 ANDAs, 2 EU dossiers, 3 products in Canada and 1 in South Africa. We also filed 4 US DMFs and 3 CEPs.

During the year we received approvals for 14 ANDAs, 1 EU dossier and 1 Canadian dossier.

Expected to invest Rs 1,000 crore over the next three years. This is largely in Finished Dosages, the new MUPS facility, expansion of the API facility and maintenance CAPEX.

In the US, added 800 million capacity of solid oral tablets and another form of formulation, on a single shift basis and will be operational by Q1FY22.

Besides, the Board of Directors of the Company has recommended a final dividend of 75 paise per share of the face value of Re 1 each for the financial year 2020-21 representing 75 per cent of paid-up capital in addition to the interim dividend of 75 paise per share paid during the year.

Today, shares of Granules India were trading 4.15 points or 1.14 per cent lower at 359.80 at 3:10 pm on NSE compared to the previous closing of 363.95.