Granules India, a pharmaceutical company based in Hyderabad, India, has experienced robust revenue growth across major markets. Despite the continued price erosion in the U.S market, the company’s FY23 revenue grew by 20% YoY to Rs 4,512 crore due to higher sales in the USA and Europe. Ebitda, which climbed 27% YoY to Rs.914 crore, also contributed to this growth, thanks to increased business across all major markets. The Ebitda margin expanded by 110 basis points to 20.3%. The company recorded adjusted profit after tax of Rs.517 crore, a 25% YoY increase, with operating cash flow improving from Rs 332 crore in FY22 to Rs 739 crore in FY23.
Growth was recorded across all segments, with finished dosages (17%), APIs (38%), and PFIs (7%). APIs saw the share in the revenue mix increase from 26% to 30% YoY. The company is expected to continue experiencing growth as raw material prices soften, and it expands into new geographies while strengthening key molecules through backward integration. Geojit has upgraded the stock rating of Granules India to ‘Buy’ with a target price of Rs 342 based on 12 times FY25E earnings per share.
Overall, Granules India is a vertically integrated pharmaceutical company with a headquarters in Hyderabad, India. It primarily manufactures active pharmaceutical ingredients, pharmaceutical formulation intermediates, and finished dosages. With its growth across all segments and expansion plans, the company is set to experience continued success in the years to come.
