Granules India announced financial results for its fiscal year 2013 ended March 31, 2013. Granules consolidated net sales increased 17 per cent to Rs 764 crore while consolidated net profit increased nine per cent to Rs 33 crore.
The company reported sales of Rs 204 crore., its highest ever, in Q4FY13, an increase of 9 per cent compared to the comparable quarter in FY12. In addition, PBT before F/X increased by 15 per cent to Rs 18 crore.
Granules also announced the completion of the expansion at its Gagillapur Facility. The company has commenced operations of the new capacity and expects to scale up operations over the next several months. Due to the delay in the scale-up of the new capacity, margins slipped since the company incurred costs to run the new facility without a concurrent increase in production. The company expects margins to increase since production is increasing at the facility.
“While we faced a setback in scaling-up our formulation expansion, we are optimistic for the future. Our strategy has enabled us to entrench ourselves within our industry and become synonymous with the products we produce. Due to our ability to provide high-quality products at a cost effective price, we have been able to work closely with market leaders which has resulted in sustainable revenue. We have made significant improvements over the past year and believe our foundation is stronger than ever. In FY14, we’ll continue to shift to formulations which will result in an improvement in profitability.” said Krishna Prasad, Managing Director of Granules India.
EP News Bureau – Mumbai
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