homeearnings NewsGranules India sees margins stabilising near Q3 levels aided by new product launches
Granules India sees margins stabilising near Q3 levels aided by new product launches
Krishna P Chigurupati, Chairman and MD of the drug maker, expects the US market to drive growth in FY25 followed by Europe.
Hyderabad-based pharmaceuticals manufacturer Granules India reported a healthy set of numbers for the third quarter of FY24. While revenues were nearly flat, the margins, at 27.1%, recovered to a 10-quarter high. In the second quarter of FY24, margin was at 17.9%.
Krishna P Chigurupati, Chairman and MD attributed the margin expansion in the current quarter to the introduction of new products both in India and the US.
Chigurupati said there was a positive impact from products introduced in the controlled substance space, particularly in the US market.
He said while growth in the current year may be flat, the coming year would be better both due to the new launches and expansion of capacities in the first phase of a new formulation plant.
Granules may continue to face some pricing pressure in the US market in the short term but expects the US business to be a major contributor to growth in 2025, followed by Europe.
Europe, traditionally a paracetamol Active Pharmaceutical Ingredient (API) market for Granules India, is now witnessing a shift towards fixed dosages (FD). The company expects the European business to grow steadily, driven by the launch of fixed dosages in various countries. The decline in paracetamol prices and raw material costs has further bolstered the prospects of Granules India's European operations.
Chigurupati said that despite capex, the paracetamol maker aims to bring down its debt.
Granules India currently has a market capitalisation of ₹10,101 crore.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Jan 24, 2024 2:49 PM IST
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