API maker Granules India’s Q1 profit hit by “challenging environment,” bad debts write-off and foreign exchange rates, but revenue climbs.
Net profit for the three months ended June 30 fell 77 per cent to INR19.2m ($411,707).while revenue grew to INR1.1bn from INR1.05bn in the comparable quarter last year.
Managing director C Prasad said: “Granules continues to show resilient growth despite a challenging environment. While we grew revenue, profit after tax was adversely affected due to restatement of foreign currency debt.
He added that the manufacturer “had to write off an amount of INR1.87 cr. in the current year as compared to a gain of INR4.45 cr. in the previous year.”
On a more positive note Prasad said the period had been one of operational growth, citing US Food and Drug Administration (FDA) approval for Granules’ Metformin abbreviated new drug application (ANDA) as a key development.
This follows just weeks after Granules reorganised its executive team, naming former COO Bhaskar Arumugam as CEO who will enable continued growth.