Granules India falls after cyberattack erodes topline

Representative Image

Shares of Granules India fell nearly 2 percent in early trade on June 30 after the company faced additional expenses and loss of revenue following a cyber security breach last month.

At 11pm, the stock was trading 1.8 percent lower at Rs 294.75 on the NSE.

Granules India informed the NSE that the impacted IT assets have been isolated and production has been restored near to normal. “This had a major effect on the operations of our business due to significant changes in our IT systems and the time needed for meeting the regulatory expectations, qualifications, recertifications, and fine-tuning of quality and production systems,” the company said in an exchange filing.

Also Read: Cyient DLM IPO subscribed 10.32 times on final day

For the quarter ended March, Granules India reported a 20 percent on-year increase in sales to Rs 4,512 crore. The net profit was up 25 percent and operating profit was up 26 percent for March 2023. The operating profit margins stood at 20 percent and earnings per share (EPS) was up 25 percent at Rs 20.81.

Earlier this month, brokerage firm ICICI Securities gave a 'buy' rating to the share with a target price of Rs 360, up 22 percent from the current market price of Rs 294.75.

The Granules India share has delivered a 4 percent return over the past month and a 8 percent return over the past year.