**[investwise]** Granules India Hops into Bed With MNC Pharma For Dosage Formulations Supply

 

Granules India Ltd (BSE: 532482, NSE: GRANULES) has begun supplies of finished dosages to a large multinational pharmaceutical company. The multi-year agreement targets the purchase of in excess of 1.5 billion doses on an annualized basis. This annualized demand represents upwards of 25% of the Company's finished dosage capacity. Commenting on the deal, Mr.C.Krishna Prasad, Managing Director stated, "We are excited to take this next step forward as it validates our vertically-integrated model. We take satisfaction in the fact that our partners can rely on Granules to provide products throughout the pharmaceutical value chain in both a cost-effective and efficient manner. This commitment will enable our finished dosage plant to ramp up production and should substantially add to our top and bottom-line figures. Going forward, we expect the finished dosage plant to drive future growth and profitability at Granules." Strong on Financials, Low PE leaves upside for Re-rating the stock Granules India Ltd., a fully backward integrated formulation manufacturer, announced financial results for its fiscal year 2010 third quarter ended December 31, 2009. On a consolidated basis, Granules posted revenue of Rs. 122.40 Cr., an increase of 24.7% over the same period last year and a net profit of Rs. 6.56 Cr. Quarter ended December 31, 2009 Net Sales: Rs. 122.40 Cr, as compared to the same period last year at Rs. 98.14 Cr. The increase is attributed to higher production at the Company's facilities and an increase in sales within the formulation division. Net Profit: Rs. 6.56 Cr, as compared to the same period last year at Rs. 0.49 Cr. EPS: Basic EPS was Rs. 3.27 as compared to the same period last year at Rs. 0.25. On a standalone basis, the Company achieved sales of Rs. 101.34 Cr. and a net profit of Rs. 5.87 Cr. This is the first time the standalone unit has crossed Rs. 100 Cr. in sales. "This was a record setting quarter due to strong performance from all our divisions. I am particularly excited about our formulation division, which continues to grow rapidly and now comprises over 9% of our sales. This division will ramp up significantly over the next few quarters as we commence work on several key contracts" said C. Krishna Prasad, Managing Director of Granules. About Granules India Ltd., Granules India Ltd. is a fully integrated pharmaceutical manufacturer. The Company manufactures several strategic Active Pharmaceutical Ingredients (APIs) and multiple Pharmaceutical Formulation Intermediates (PFIs), which are distributed in over 50 countries. The Company has recently forayed into the manufacturing of finished dosages with a plant that has a capacity of 6 billion tablets per annum, scalable to 12 billion tablets. This facility will allow Granules to offer products across the value chain. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.   Nothing in this article is, or should be construed as, investment advice.

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