Granules India Ltd Q4FY21 consolidated PAT drops QoQ to Rs. 127.56 crore

GRANULES INDIA LTD. has reported financial results for the period ended March 31, 2021.

Financial Results (Q4 FY20-21) - QoQ Comparison

The company has reported total income of Rs.802.59 crores during the period ended March 31, 2021 as compared to Rs.860.92 crores during the period ended December 31, 2020.

The company has posted net profit / (loss) of Rs.127.56 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.146.80 crores for the period ended December 31, 2020.

The company has reported EPS of Rs.5.13 for the period ended March 31, 2021 as compared to Rs.5.90 for the period ended December 31, 2020.

Financials	Q4 FY20-21	Q3 FY20-21	% Change
Total Income	₹ 802.59 crs	₹ 860.92 crs	-6.78%
Net Profit	₹ 127.56 crs	₹ 146.80 crs	-13.11%
EPS	₹ 5.13	₹ 5.90	-13.05%

Financial Results (Q4 FY20-21) - YoY Comparison

The company has reported total income of Rs.802.59 crores during the period ended March 31, 2021 as compared to Rs.622.40 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.127.56 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.92.33 crores for the period ended March 31, 2020.

The company has reported EPS of Rs.5.13 for the period ended March 31, 2021 as compared to Rs.3.62 for the period ended March 31, 2020.

Financials	Q4 FY20-21	Q4 FY19-20	% Change
Total Income	₹ 802.59 crs	₹ 622.40 crs	28.95%
Net Profit	₹ 127.56 crs	₹ 92.33 crs	38.16%
EPS	₹ 5.13	₹ 3.62	41.71%

Financial Results (Year ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.3264.42 crores during the 12 months period ended March 31, 2021 as compared to Rs.2635.20 crores during the 12 months period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.549.45 crores for the 12 months period ended March 31, 2021 as against net profit / (loss) of Rs.335.39 crores for the 12 months period ended March 31, 2020.

The company has reported EPS of Rs.21.95 for the 12 months period ended March 31, 2021 as compared to Rs.13.15 for the 12 months period ended March 31, 2020.

Financials	Year Ended FY20-21	Year Ended FY19-20	% Change
Total Income	₹ 3264.42 crs	₹ 2635.20 crs	23.88%
Net Profit	₹ 549.45 crs	₹ 335.39 crs	63.82%
EPS	₹ 21.95	₹13.15	66.92%

Financial and Business Highlights for Q4FY21

- Income from operations up 33% YoY, despite challenges posed by various business scenarios at the backdrop of COVID-19 and logistics disruption, resulting in shortage of raw materials and lower utilization capacities especially in Paracetamol. Growth was driven by new launches and an increase in the market share of existing products. This also compensated for the loss of the MEIS benefit earlier this year.

- EBITDA for the quarter was up 102% YoY, +860 bps margin expansion on account of higher sales and volumes over a lower base of the previous year. The low base of the previous year was due to lockdowns and the export ban of Paracetamol.

- PAT for the quarter stood at INR 128 Cr, up 38% YoY.

- During the quarter, launched 2 new products, filed 3 ANDAs, 1 EU dossier and 1 product in Canada.

- We received approvals for 6 ANDAs, 1 EU dossier and 1 Canadian dossier.

Financial and Business Highlights for FY2021

- FY21 income from operations at INR 3,238 Cr, record growth of 25% YoY. EBITDA stood at INR 855 Cr, a growth of 63% YoY. EBITDA margins stood at 26%. PAT at INR 549 Cr a growth of 64%.

- Increased market penetration through existing approvals and new product launches contributed to growth in top-line.

- Gross Margins moved mainly on account of higher PFI and FD volumes, which have grown by around 50% over the previous year.

- EBITDA improved mainly on back of higher volumes and new launches. Our operational efficiencies, in combination with our added capacities, have increased our FD volumes by nearly 50% which translated into higher EBITDA. In addition to this, our focus on our product rationalization based on profitability enabled us to achieve this growth.

- During the year, the Pharmaceutical Formulation Intermediates (PFI) segment grew 49% YoY, Active Pharmaceutical Ingredients (API) segment grew 12% YoY and Finished Dosage (FD) grew 25% YoY.

- High contribution from FD continues to grow in absolute terms from INR 1,360 Cr in FY20 to INR 1,699 Cr in FY21 up 25% YoY.

- PFI grew 49% YoY from INR 421 Cr in FY20 to INR 626 Cr in FY21, on the back of increased market penetration and addition of new customers.

- API grew 12% YoY due to new customer additions.

- Strong growth momentum witnessed across geographies.

- Withdrawal of the MEIS scheme in H2FY21 had an impact of ~INR 39 Cr on profitability.

- Net Debt down by 5.1% YoY.

- As of March 2021, Net debt to EBITDA stood at 0.7x vs. 1.2x as of March 2020.

- ROCE stood at 30.7%, up significantly on account of higher capacity utilization. Capacity increases came through quickly via addition of new modules and equipment with limited capital expenditure.

- During the year, launched 12 new products, filed 5 ANDAs, 2 EU dossiers, 3 products in Canada and 1 in South Africa. We also filed 4 US DMFs and 3 CEPs.

- During the year we received approvals for 14 ANDAs, 1 EU dossier and 1 Canadian dossier.

- Expected to invest ~INR 1000 Cr over the next three years. This is a largely in Finished Dosages, the new MUPS facility, expansion of the API facility and maintenance capex.

- In the US, added 800 Mn capacity of solid oral tablets and another form of formulation, on a single shift basis and will be operational by Q1FY22.

- The Board of Directors have recommended final dividend of 75 paise per equity share of Re.1/- each in addition to interim dividend of 75 paise per equity share of Re.1/- each paid during the year.

Commenting on the results, Mr. Krishna Prasad Chigurupati, Chairman & Managing Director of Granules India Limited said, "I am very pleased with the performance across all our segments and geographies during the year. Multiple product launches across portfolios helped us to deliver a record high growth of 25% in sales. We also delivered a strong growth in profit, which is up 64% YoY. Despite unprecedented challenges over the past year, our robust performance demonstrates the unwavering commitment of our colleagues and the resilience of our business. We are investing for the next phase of growth across all verticals. I remain confident in Granules India's ability to continue to deliver on our stated goals to our stakeholders in FY2022 and thereafter, while remaining steadfast on ensuring the safety of our employees."

Shares of GRANULES INDIA LTD. was last trading in BSE at Rs.364.15 as compared to the previous close of Rs. 347.35. The total number of shares traded during the day was 291153 in over 4905 trades.

The stock hit an intraday high of Rs. 365.1 and intraday low of 350. The net turnover during the day was Rs. 104510692.

Source : Equity Bulls

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