Granules India: 7 dossiers ready to go commercial

Granules India BSE | NSE 28/05/12 Are Mutual Funds betting on Granules India?

Granules India  has announced its third quarter results. The company's net sales are up at Rs 50 crore versus Rs 44.4 crore, and net profit is up at Rs 3.2 crore versus Rs 2.21 crore.

As far as the numbers are concerned, MD of the company, Krishna Prasad, says that the same trend is likely to continue going forward.

The company currrently in the process of raising money through FCCBs.

He informs that their tableting division is set to go commercial by May-June, and that seven dossiers are ready to go commercial very soon.

Excerpts from the exclusive inteview with Krishna Prasad:

Q: Walk us through this quarter - where has the growth really come in?

A: The growth is from a change of product mix and increased growth of products likes Metformin. Metformin PFI, which was recently approved in the United States.

Q: It has been a muted quarter for you because your sales have risen from about Rs 44 crore to about Rs 50 crore and your net profit up from about Rs 2 crore to Rs 3 crore. Can we see a greater enhancement in the following quarters?

A: Yes and the same trend will continue. If you compare it to the last quarter, the net profit has gone up and same trend will continue QoQ because sales of the new product continue to increase.

Q: Could you break up the performance in each one of your verticals - PFI, API as well as your tableting division?

A: The tableting division is still not on stream. We expect to go commercial sometime by May-June. Profits from PFI would be something like about 70-75% and 35% would have been from API.

Q: You have raised about USD 20 million though the issue of FCCB, ADR and GDR. How do you plan to deploy those funds?

A: We have not yet raised these funds. We are in the process of raising the funds and this is going towards completion of our tableting plant and a little API capacity expansion.

Q: Walk us through the tie-up with GSK Consumer at this point of time. How many product launches are you looking at for the next quarter and the revenues also expected from the sale?

A: We already have about seven dossiers ready to go and those are all products for our new plant that is supposed to go commercial. We also have started doing product development for other companies with a development-manufacturing contract. This year we are targeting about 15-16 products; out of which about seven would be ANDA and rest would be OTC (over-the-counter) dossiers.

Q: When will the revenues from your Granules Biocause joint venture start flowing in?

A: From start of February; our financial year being end of June, the last five months would have revenues from the JV.

Q: So in that light how would you propose to close the year?

A: I think definitely it is going to be more than 30-35% over last year of Rs 175 crore.