homeearnings NewsGranules India operating at 60% capacity; passing on rising paracetamol prices to customers
Granules India operating at 60% capacity; passing on rising paracetamol prices to customers
Granules India reported its Q3 numbers with steady growth across segments. Revenue came in above estimates owing to higher paracetamol sales and margin has been maintained at 17 percent. Krishna Prasad Chigurupati, Chairman and Managing Director, Granules India discussed the earnings fineprint and outlook with CNBC-TV18.
Granules India reported its Q3 numbers with steady growth across segments. Revenue came in above estimates owing to higher paracetamol sales and margin has been maintained at 17 percent. Krishna Prasad Chigurupati, Chairman and Managing Director, Granules India, discussed the company's recent performance and outlook with CNBC-TV18.
Chigurupati highlighted that raw material cost of paracetamol has risen and they have been passing them on to customers.
He said, "Even though the selling prices of paracetamol have gone up, we are only passing on the raw material cost to our customers."
On shortage of raw materials and its ensuing effect on paracetamol production, he said, "Even though there is demand for paracetamol, we don't have enough production. We have been operating at only 60 percent of the production capacity, due to raw material shortages."
"We see some uptick in fixed dosage (FD) sales going forward. So we see that things can improve, how much is something I'm not sure because things are still uncertain, freight rates are still high. But going forward, we see some improvements quarter on quarter (QoQ)," he added.
He believes, the company will be able to maintain its growth rates in the next fiscal. Further he believes owing to the uncertainties involved, it will be difficult to give a guidance on margin.
"In FY23, definitely, we should be maintaining a growth of 12 to 18 percent. 12 percent at least, we should be doing. But again, like I said, there's so much uncertainty around, this is a wishful thinking. But I believe new capacities coming in will definitely help us; new launches will help us as well," he said.
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For the full interview, watch the accompanying video
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