homeearnings NewsGranules India Q4FY21: Mixed show; mgmt expects 18 22% profit growth in next quarters
Granules India Q4FY21: Mixed show; mgmt expects 18-22% profit growth in next quarters
Granules India's Q4 earnings are below expectations on the revenue front, but margins and profit have met street estimates. Further, CNBC-TV18 learnt that raw material prices for some key COVID drugs have spiked as much as 200 percent in just the last month.
Granules India's Q4 earnings are below expectations on the revenue front, but margins and profit have met street estimates. Further, CNBC-TV18 learnt that raw material prices for some key COVID drugs have spiked as much as 200 percent in just the last month.
On paracetamol, Krishna Prasad Chigurupati, Chairman and Managing Director of Granules India said, “Right now we are operating at about 45 percent capacity, however with a lot of capacity in India that is coming on stream for the main raw material para amino phenol or PAP so at least few companies have started production so we expect quarter-on-quarter there will be an improvement and Q4 will be full normalised.”
He added, “For next quarter Q2, expect to operate at around 60 percent.”
On revenues for FY22 Chigurupati said, “Revenues from paracetamol will be and also a contribution from paracetamol will be down. However, as happened in Q4 of last year due to contribution of other products and also new launches we expect the same to continue in the year FY22 and in spite of loss on paracetamol, revenues and profitability we still expect we will have a PAT growth of anywhere from 18-22 percent.”
“Expect EBITDA we be anywhere up to 25 percent so we definitely expect we will have a PAT growth of 20 percent. Also, new launches will be the main contributor,” he added.
On surge in raw material prices, he said, “There are slight increases about 10 percent increases in some raw materials but they are coming down as of today so we don’t see any effect of raw materials increases other than paracetamol.”
For the full interview, watch accompanying video
(Edited by : Abhishek Jha)
First Published: May 12, 2021 12:01 PM IST
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