BENGALURU (Reuters) – Drug maker Granules India reported a marginal rise in third-quarter profit on Tuesday, helped by easing raw material costs.
The company’s consolidated profit rose 1.6% to 1.26 billion rupees (nearly $15 million), according to an exchange filing.
Granules has seen slowing profit growth since the third quarter of 2022. It reported a fall in profit for the past two quarters as it grappled with soaring costs.
The company reported a 0.6% climb in expenses for the third quarter, helped by a 7% fall in raw material costs. In contrast, expenses ranged between 9% and 17% in the last four quarters.
This resulted in a flat profit margin year-on-year at 11%.
Revenue rose 1% to 11.56 billion rupees, with the fixed dosages segment contributing 66% to the total.
Granules, which focuses on making active pharmaceutical ingredients (API), holds 30% of the global market for Paracetamol. It makes the drug’s API and finished dosage, the ready-for-consumption product.
Shares of the company rose as much as 3.2% after the results before paring some gains to trade 2.9% higher.
They climbed about 14% in the December quarter, outperforming a 9% rise in the Nifty Pharma index.
Rival Glenmark Life Sciences is also expected to report its third-quarter results on Tuesday.
($1 = 83.0900 Indian rupees)
(Reporting by Manvi Pant and Kashish Tandon in Bengaluru; Editing by Sonia Cheema)
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