Granules India shares fall over 3% after firm's Q3 net profit drops 6% to Rs 118 crore

Granules India shares declined beyond 3.5 percent on Friday, January 24, following the announcement of its weak Q3FY25 earnings. It registered a 6.4 percent year-on-year fall in net profit to Rs 118 crore.

Granules India shares fell nearly 4 percent on Friday, January 24, following the announcement of its weak Q3 FY25 earnings. It registered a 6.4 percent year-on-year fall in net profit to Rs 118 crore. The shares later recovered some losses and closed at Rs 582.35. This marks a fall of nearly 3 percent in share price from the previous day's closing level.

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The company announced its earnings for the quarter and nine months ended December 31, 2024. The company reported a net profit of Rs 117.6 crore in Q3 FY25, implying a decline of nearly 6.4 percent from the Rs 125.6 crore net profit reported in Q3 FY24.

It reported a decline of 1.5 percent in revenue at Rs 1,137.6 crore, as against Rs 1,156 crore in the corresponding quarter of the previous financial year. The EBITDA stood 8 percent lower, at Rs 230.2 crore, compared to Rs 250.4 crore in the same quarter of previous financial year, while margin dropped to 20.2 percent in Q3 FY25 from 22 percent in Q3 FY24.

Among the primary contributors, the North American market held 77 percent of its overall revenue for the quarter. It was at 66 percent in the corresponding period last year.

Earlier in the month of September, the pharmaceutical company had announced the halt of its production at the Gagillapur plant. This was attributed to risk assessment being carried out on account of US FDA's observations. The month of October saw resumption of production activity but with some hiccups.