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Targeting FY07 rev growth at Rs 215 cr: Granules

Published on Mon, Apr 30, 2007 at 11:52 | Source : Moneycontrol.com

Updated at Mon, Apr 30, 2007 at 18:08

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Granules India

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Granules India has come out with Q4FY07 results. The company has posted net profit of Rs 2.84 crore (Rs 28.4 million) in fourth quarter versus Rs 2.79 crore (Rs 27.9 million) in corresponding quarter of previous year.

Net sales has increased to Rs 45.4 crore (Rs 454 million) as against Rs 43.7 crore (Rs 437 million).

C Krishna Prasad, MD, said that higher depreciation and interest rates have impacted results. They have raised USD 10 million out of the planned USD 25 million. They will also launch 12 products in FY08.

Their biggest contiburiton for Q4 came from product development. For FY07, they are targeting revenue growth of 22% at Rs 215 crore and profits of Rs 11 crore (June end).

Excerpts from CNBC-TV18's exclusive interview with C Krishna Prasad:

Q: 5% growth in topline and a very muted flat bottomline, why has it been a flatish quarter?

A: We had these new assets come in, which are still not yielding to the fullest extent and proportionately, the depreciation and interest on these new assets had been high. But there has been a big growth in EBITDA - it is about 24.8% for this quarter and if we take the first nine months, it's 33% increase in EBITDA.

Q: What has driven that increase?

A: It's a combination of product mix and also the biggest contribution came from product development. We do contract product development for different companies with a manufacturing contract from the services.

Q: Your are raising about Rs 23 crore, how do you plan to deploy these funds?

A: These are meant for our tableting plant, which is on completion; and the API plant, which was just completed. Also to fund our JV in China, we are raising USD 25 million and USD 10 million is already raised.

Q: What is the capacity utilization of your Paracetamol plant?

A: Capacity utilization is about 40% right now.

Q: What is that you are guiding for the future, what kind of revenue mix and what kind of growth trajectory, what kind of margins?

A: The next quarter is definitely going to be better and we will close the financial year (our year is June); 20-22% growth over last year and that should be about Rs 215 cr in topline and a bottomline of Rs 11 crore plus.

Q: From which core product will that contribution come in from?

A: It is going to come from PFIs and APIs this quarter.

Q: Are you looking at new launches?

A: Lots of tablets are under development and in coming year we should be launching altogether in the OTC and prescription segment about 12 products altogether.