Granules Released Q4 FY2024 Results: EBITDA Increased 12% YoY

Granules India Limited, a leading vertically integrated pharmaceutical company, announced its financial results for the fourth quarter (Q4) and full fiscal year (FY) 2024, ending March 31, 2024. The report paints a mixed picture, with a slight decline in overall revenue balanced by a significant increase in the North American market.

Revenue Trends and Market Focus

Granules India reported a 2% year-over-year (YoY) dip in total revenue from operations for Q4, reaching ₹11,758 million. However, this decline is offset by a positive development – a substantial increase in the company’s North American market share. Revenue contribution from North America surged to 70% in Q4 FY2024, compared to 58% in the same quarter of the previous fiscal year. This growth signifies Granules India’s strengthening presence and success in this crucial pharmaceutical market.

Product Segment Performance

Breaking down Q4 FY2024 revenue by product segment, finished doses contributed 14%, pharmaceutical formulation intermediates (PFI) accounted for 13%, and active pharmaceutical ingredients (API) remained the dominant segment at 73%. An encouraging highlight is the 41% growth in formulations containing goods produced by Granules India Limited (GPI), indicating a rising demand for finished pharmaceutical products.

Financial Efficiency and Debt Management

While revenue growth moderated, Granules India maintained a healthy Return on Capital Employed (ROCE) of 16.5% for Q4 FY2024. Although lower than the 21.2% reported in the same period last year, this figure still reflects a strong return on invested capital. The company’s net debt position also remains well-managed, with net debt of ₹8,421 million, equating to an EBITDA ratio of 0.98x, indicating a comfortable level of leverage.

“We had a strong uptick in gross margin for the Q4 and the full year, with continued growth in formulations shares coming from the US and Europe as part of our global expansion strategy and a higher contribution from new products. While the fiscal year numbers were below expectations due to cyber incidents and low paracetamol demand, we are very excited about the way our strategies for the future are playing out and look forward to the upcoming years,” said Dr Krishna Prasad Chigurupati, Chairman & Managing Director of Granules India Limited.

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