May cyber-attack impacts Granules India Q1 profit; Margin falls 680 basis points 

Granules India, on Wednesday, reported a consolidated profit of Rs 48 crore in the first quarter of current financial year, a loss of approximately 63 per cent as compared to Rs 127.5 crore in the same quarter previous fiscal. The company claims that the fall in its profit was due to a cyber security attack that the company faced in May. 

“Q1 sales and PAT were impacted severely by the business interruption caused by the IT incident. Q1 Operating expenses were higher in line with the expected revenue and hence the gap in sales had a severe impact on PAT. We employed the appropriate incident response protocols for containment of the IT incident and enhanced our security measures. Business has been restored to near normalcy as we speak. Our short to medium term growth trajectory shall remain intact,” said Krishna Prasad Chigurupati, Chairman & Managing Director of Granules India

However, the revenue fell marginally to Rs 985.5 crore as compared to Rs 1,019.5 crore in the same quarter last year. 

Granules India’s earnings before interest, taxes, depreciation and amortisation (EBITDA) plunged 35 per cent to Rs 137 crore as opposed to Rs 211 crore in the same quarter previous fiscal. Meanwhile, its margin dropped by 680 basis points (bps) to 13.9 per cent from 20.7 per cent in the same quarter last year.

The company’s total expenses grew over 7 per cent to Rs 920 crore against Rs 858 crore in the same quarter previous fiscal.

The stock of Granules India settled at Rs 322.35 apiece, down over 0.2 per cent, when the market closed today, August 09, 2023.

Earlier this week, US Food & Drug Administration (US FDA) approved the company’s Abbreviated New Drug Application (ANDA) for Metoprolol Succinate Extended Release (ER) Tablets 25/50/100/200 mg. The company had filed two ANDAs for the same product with different technologies. This is the second ANDA approval for Metoprolol Succinate ER tablets that is therapeutically equivalent to the RLD, Toprol- XL, ER tablets for Granules.

At the beginning of the month, Granules India announced that Granules Pharmaceuticals (GPI), a wholly owned foreign subsidiary of the company, had successfully completed the US FDA Post-marketing Adverse Drug Experience (PADE) Inspection for all its entities in the United States, including Granules India Limited. The inspection was conducted at Granules Pharmaceuticals Inc. (GPI) from July 31, 2023 to August 03, 2023, and the inspection was closed with zero observations.