Granules India reported its Q2 earnings, revenues are up 23 percent at about Rs 858 crore, and these are year-on-year (YoY) numbers, consolidated net profit is up 71 percent at Rs 164 crore.
Krishna Prasad Chigurupati, CMD of Granules India said, “This is a growth story which started a few quarter ago especially entire last year. We did invest Rs 1,400 crore in the last 2-3 years and put in lot of capex and all the investments that we made have started paying off.”
“This year we will be doing double the growth what we anticipated and that is because we got a lot of ANDAs approved earlier than what we thought we would get them at. Also we started getting bigger market shares as there has been some disruptions in US markets and the other markets too.”
“Profit growth for the full year just like I said expect 25-30 percent,” he added.
Talking about debts he said, “We have about Rs 200 crore cash, so net debt is round Rs 600 crore and we do not expect to decrease it too much because as growth is happening, our working capital requirements are increasing drastically and we are investing in a lot of capex.”
“So debt decrease except for the normal decrease that would happen of our schedule payments we deliberately would not like to reduce debts at least this year.”
When asked about reports of promoters selling out he said, “We don’t want to deny this or accept this. However, one thing what we can always say is we will definitely do what is required by the stock exchange and SEBI rules and the interest of all shareholders are of the utmost importance to us.”