Q1 2025 Granules India Ltd Earnings Call Transcript
Key Points
- Granules India Ltd (BOM:532482) reported a robust performance in Q1 FY25, with revenue growth of 20% year-over-year, driven by formulations.
- The company has significantly increased its share of finished dosages (FD) to 76% of total sales, up from 65% in FY24 and 55% in FY23.
- New products beyond the legacy five products contributed 35% to Q1 revenue, showing a strong growth trajectory.
- Investments in the US, including local manufacturing and packaging sites, are paying off well, contributing to growth in the US market.
- Granules India Ltd (BOM:532482) continues to prioritize R&D, with significant progress in oncology, antidiabetic segments, and innovative manufacturing technologies like biocatalysis and continuous manufacturing.
- The company faced a decline in Para API and PFI sales volume and price erosion, which offset some of the growth in FD sales.
- European sales were down by 35% in INR terms, primarily due to a downturn in the paracetamol market.
- The cash-to-cash cycle increased to 183 days in the current quarter from 161 days at the beginning of the year, impacted by new launches and Red Sea issues.
- Employee costs and other expenses have increased by approximately 16% to 18% year-over-year, impacting operating leverage.
- The company is cautious about its INR2,000 crore CAPEX in the CZRO project due to infrastructure creation delays and market uncertainties.
Ladies and gentlemen, good day, and welcome to the Granules India Limited Q1 FY2025 earnings conference call. As a reminder, all participants' line will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Irfan Raeen from Orient Capital. Thank you, and over to you, Mr. Irfan
Thank you, Riya On behalf of Granules India Limited, I extend a warm welcome to all participants on Q1 FY25 financial result discussion call. Today on the call we have e Dr. Krishna Prasad sir, Chairman and Managing Director; Dr. KVS Ram Rao sir, Joint Managing Director and Chief Executive Officer; Ms. Priyanka Chigurupati, Executive Director; Mr. Mukesh Surana, Chief Financial Officer.
Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward-looking statements which are completely based upon our beliefs,
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