KRChoksey: Granules India Q1 Reports Higher Contribution From FD & PFI, Better Realizations In API Drives Topline Growth

KRChoksey Report

Granules India beat our Q1 FY21 revenue estimates by 14.1% and posted a growth of 23.6% YoY on Q1 FY20. Growth in the quarter was driven by increase in market share of the base business with increased demand and pricing for core molecules , and higher contribution from Pharmaceutical Formulation Intermediaries (PFI) and Finished Dosages (FD) with new launches. Contribution from FD increased to 52% (+35.2%/12.1 YoY/QoQ) in Q1 FY21 from 48% in Q1 FY20 and PFI increased to 19% (42.0%/76.6% YoY/QoQ) from 16% in Q1 FY20.

Geography wise, India business grew 10.5% YoY (-16.1% QoQ, 11% of revenue), North America grew 26.8% YoY (+10.6% QoQ, 52% of revenue), Europe grew 8.8% YoY (+62.6% QoQ, 19% of revenue), Latin America grew 70.7% YoY (up 70.7% QoQ, 12% of revenue) while Rest of the World (ROW) which contributes 6% grew 11.6% YoY (up 147.4% QoQ). Company launched Colchicine tablets and Butalbital APAP caffeine tablets through GPI during the quarter. Company also filed three Abbreviated New Drug Application (ANDA)s/ Dossiers in the North American and European markets and received approvals for six ANDAs (including one tentative approval) from the United State Food and Drug Administration (USFDA) during the quarter.

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