Granules India's first-quarter profit surges as margins improve

Drugmaker Granules India reported a nearly 60% rise in first-quarter profit on Tuesday as margins improved in its complex generics business.

Consolidated net profit for the quarter ended June 30 rose to 1.8 billion rupees ($18.71 million), compared to 1.13 billion rupees a year earlier, when it had booked a one-time charge.

Total revenue from operations climbed 22% to 14.77 billion rupees on higher sales of finished medicines.

Profit was helped by margin expansion due to a better mix of products sold, the company said, offsetting a 17% increase in expenses.

The drugmaker incurred a one-time charge of 259.1 million rupees in the year-ago period tied to its acquisition of Senn Chemicals and settlement of certain legal cases.

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Granules accounts for about 30% of the global market for paracetamol and operates 10 manufacturing plants worldwide - seven in India, two in the U.S. and one in Europe.

Analysts at Choice Equity Broking expected revenue to grow on the back of robust demand for its peptide and contract manufacturing drugs, and flagged the company’s oncology launch pipeline and an U.S. FDA approvals as key focus areas for investors.

Shares of the company rose as much as 3.2% after results.