Granules India Q4 results preview: Paracetamol, Ibuprofen maker's net profit likely to grow 26%, margin may improve by 130 bps

Granules India Q4 results preview: Hyderabad-based pharma company Granules India, which makes painkiller drug Paracetamol, is all set to report its financial results for the quarter ended March 2023 on Tuesday, May 16. Analysts expect the drug maker's active pharmaceutical ingredients (API) and finished dosage formulation (FDF) segments to support its overall growth. 

According to Zee Business research, Granules India — which also manufactures anti-inflammatory drug Ibuprofen — is likely to report a net profit of Rs 140 crore for the January-March period, which translates to year-on-year growth of more than 26 per cent. 

The analysts peg the company's revenue growth at 10 per cent to Rs 1,137 crore.

Granules India is estimated to report an 18 per cent increase in earnings before interest, taxes, depreciation and ammortisation (EBITDA) to Rs 227 crore, according to the research.

Its margin is likely to improve by 130 basis points (1.3 percentage points) to 20 per cent compared with the year-ago period. 

Investors will closely track the company's performance in its core molecules unit. The company earns the lion's share of its revenue from core molecules such as Paracetamol, Metformin and Guaifenesin. They will also look out for any clarity on the company's capital expenditure (capex) related to Greenko. 

Granules India is in a strategic partnership with renewable energy group Greenko to develop integrated green pharma zones.

Granules India shares: Historical performance

Granules India shares lost 8.8 per cent of their value in the March quarter, a period in which the Nifty 50 index declined 4.1 per cent.  

The stock finished 2022 with a loss of 19.8 per cent, worse than a five per cent fall in the headline index. 

Will Granules India also announce a dividend on May 16?

Granules India dividend history

Granules India has a history of rewarding its shareholders regularly, having paid a string of payouts over the past few years. 

In the past five years, the company has paid 16 dividends.

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