Granules India posts 24.8% growth in Q3 FY07

Hyderabad, April 30, 2007:
Granules India Ltd, a fully integrated pharmaceutical company with specialisation in pharmaceutical formulation intermediates, today announced a 24.8% rise in EBIDTA at Rs.8.06 crore for the third quarter ended March 31, 2007 compared to Rs.6.46 crore in the corresponding quarter last year. Net profit during the quarter, increased to Rs.2.85 crore from Rs.2.79 crore in the corresponding quarter ended March 31, 2006.

For the 9 months period ending March 31, 2007, Granules has reported EBIDTA of Rs.24.09 crore, a surge of 33.19% as compared to the 9 months ended March 31, 2006. Net profit grew proportionately by 13.12% to Rs.7.92 crore.

Highlighting the company's performance, Krishna Prasad, Managing Director, Granules India said, "the company is focused on increasing its operating profitability (EBIDTA) to make up for the higher interest and depreciation costs out of the major recent capital investments. We have maintained the bottomline, in the face of a higher IDTA costs of Rs.5.82 crores as against Rs.4.17 crores of the same quarter of the previous year, an increase of 39.46%."

Prasad also added, "We have laid major internal emphasis on working capital management and have made sure our inventories have been rationalized across our supply chain and including our subsidiary in the US. We expect the full effect of our working capital management strategy to reflect in our books by the end of this calendar year 2007.

The Board of Directors of Granules India approved the issue of 22.11 lakh equity shares of Rs.10 each, fully paid-up at Rs.105.50 per share (including premium), to ISP Investco LLC on a preferential basis. Recently, US based private equity firm Ridgeback Capital had picked up a 14.8% stake in the company. The company has also recently entered into an outsourcing agreement with Matchland of Australia.

Source : Equity Bulls

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