Granules India Ltd has announced its move to invest $20 million in its wholly-owned subsidiary Granules Pharmaceulticals Inc.
The company Board, which met on Saturday, while approving the third-quarter results, informed BSE about its move to invest in its US subsidiary.
The Hyderabad-based pharmaceutical company registered a net profit of Rs. 39 crore during the third quarter ended December 31, 2016, a growth of 34 per cent over Rs. 29 crore it logged during the corresponding quarter last fiscal.
The company registered third-quarter revenue of Rs. 359 crore, an increase of 11 per cent compared to Rs.325 crore during the same period last fiscal.
The company said its operating margin improved by 189 basis point to 22.4 per cent from 20.5 per cent in Q3FY16.
The standalone logged Rs. 337 crore in sales during the quarter and posted a profit of Rs. 35 crore.
The company’s board of directors approved a third interim dividend of 25 paise per share of face value of Rs. 1 each for the financial year 2016-17.
“For the observations issued by INFARMED for Gagillapur and US FDA for Vizag, we have submitted our response to the respective regulatory authorities within the stipulated time and are hopeful of getting a positive response soon. We remain committed to adhering to regulations and standards benchmarked globally and produce quality drugs for our marquee clients,” Krishna Prasad Chigurupati, Chairman and Managing Director, said.
“We are happy with the continued bottom-line growth in the third quarter of the current fiscal, thanks to our efficiency and growing profitability from our joint venture companies. To reinforce the top-line growth momentum for the future, we are aggressively pursuing completion of our API and PFI expansion plans and introduction of new products,” he said.
During the quarter, the company had two inspections at its Gagillapur facility from US FDA and INFARMED and one in its joint venture facility in Vizag from US FDA. The Gagillapur facility completed the US FDA inspection with no observations.