Granules India (532482) Q4 23/24 earnings summary

Executive summary

• FY24 revenue was ₹45,064 Mn, broadly flat YoY; formulations growth helped offset Para API volume decline and price erosion, alongside the impact of a Q1 cyber incident.

• Higher value-added mix lifted value-added margin to 55.1% from 48.9%, while EBITDA fell 6% and PAT fell 22% YoY.

• Q4 revenue was ₹11,758 Mn, down 2% YoY; EBITDA rose 12% and PAT rose 8% as value-added margin improved.

Financial highlights

• FY24 revenue ₹45,064 Mn vs ₹45,119 Mn; value added ₹24,851 Mn, up 13% YoY, and value-added margin 55.1% vs 48.9%.

• FY24 EBITDA ₹8,560 Mn, down 6% YoY; EBITDA margin 19.0% vs 20.3%. EBITDA before R&D spend grew, while higher R&D investment weighed on reported EBITDA margin.

• FY24 PAT ₹4,053 Mn, down 22% YoY; PAT margin 9.0% vs 11.4%, significantly impacted by higher interest rates.

• Q4 revenue ₹11,758 Mn, down 2% YoY; EBITDA ₹2,557 Mn, up 12%, and PAT ₹1,296 Mn, up 8%.

Outlook and guidance

• Genome Valley finished-dosage facility, with planned capacity of 8 Bn dosage, began operations in Mar 2024; targeted run rate is 2.5 Bn dosage by Mar 2025.

• Growth is expected to be driven primarily by new Rx and OTC launches, supported by business development in new dosage forms.

• Product pipeline priorities include CNS/ADHD, oncology, large-volume products, new dosage forms, and enzyme- and continuous-manufacturing technologies.