Granules India posts $19.2 million profit in Q2

Indian pharmaceutical company Granules India reported a consolidated net profit of 1.82 billion rupees, or $19.19 million, for the quarter ended September 30. This figure represents a nearly 40% increase from the 1.31 billion rupees recorded in the same period last year.

Revenue from operations climbed 20.3% to 15.60 billion rupees. North American markets accounted for 72% of that total, signaling continued strong demand in that region. The company attributed the growth to new product launches and sustained sales of its core medicines in key overseas territories.

Expenses increased 18.5% over the same period. The cost of materials consumed jumped 23.2%, creating margin pressure. Prasad Chigurupati, the company’s chairman and managing director, stated that cost pressures will persist. He noted the firm is working with customers to manage these costs with a lag.

Granules manufactures roughly one third of the world’s paracetamol supply. The company operates 10 manufacturing plants globally, with seven located in India, two in the United States, and one in Europe. It serves customers in more than 80 countries.

Investors had previously anticipated that newer product lines would drive sales. US regulatory approvals and recent launches were viewed as key factors for the company's performance.