{"id":53,"date":"2019-08-05T11:28:03","date_gmt":"2019-08-05T11:28:03","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=53"},"modified":"2019-08-05T11:34:04","modified_gmt":"2019-08-05T11:34:04","slug":"granules-1qfy20-results-finished-dosage-sales-to-drive-margins-higher","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/08\/05\/granules-1qfy20-results-finished-dosage-sales-to-drive-margins-higher\/","title":{"rendered":"Granules 1QFY20 results: Finished dosage sales to drive margins higher"},"content":{"rendered":"\n<p><em>Dated: 2nd August 2019<\/em><\/p>\n\n\n\n<p>1QFY20 result update:<\/p>\n\n\n\n<ul><li>Consolidated revenue grew 31% YoY (-3% QoQ) to Rs 5,953 mn. API, PFI and FD segments contributed to 36%,16% and 48% of revenues respectively.<\/li><li>EBITDA grew 63% YoY (+22% QoQ) to Rs 1,186 mn. Reported EBITDA margins expanded by 390 bps YoY to 19.9% from 16.0% in 1QFY19. <\/li><li>Net Profit without JV grew 55% to Rs 578 mn and net profit with the share of JV grew 61% YoY to Rs 832 mn.<\/li><\/ul>\n\n\n\n<p>Management\nCommentary: <\/p>\n\n\n\n<ul><li>Management has reiterated 20% CAGR growth in revenues and 25% CAGR growth in profits for the next 3 years.<\/li><li>Management has said that raw material costs risks have been mitigated so going forward raw material costs will be stable.<\/li><li>Good growth in FD sales and increased utilization of few idle capacities has led to an improvement in gross margins<\/li><li>Management has guided for ~19% EBITDA margins for FY20E.<\/li><li>Granules have guided for 8-12 filings and 3-5 approvals in FY20E.<\/li><li>Capex guidance for FY20E remains constant Rs 1500 mn.<\/li><li>Management has mentioned that they will be reducing promoter pledging which is 43% as of now to 33% in a few days and will be fully removed by FY21E.<\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: market screener website)<\/p>\n\n\n\n<ul><li>The closing price of Granules is Rs 92\/- as on 2<sup>nd<\/sup>\nAugust 2019. It traded at 8x \/ 7x the consensus EPS for FY 20E \/ FY 21E of Rs 11.6\n\/ 13.6 respectively. <\/li><li>Consensus target price of Rs 142\/- implies a PE of 10x\non FY21E EPS of Rs 13.8.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Dated: 2nd August 2019 1QFY20 result update: Consolidated revenue grew 31% YoY (-3% QoQ) to Rs 5,953 mn. API, PFI and FD segments contributed to 36%,16% and 48% of revenues respectively. EBITDA grew 63% YoY (+22% QoQ) to Rs 1,186 mn. Reported EBITDA margins expanded by 390 bps YoY to 19.9% from 16.0% in 1QFY19. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/53"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=53"}],"version-history":[{"count":3,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/53\/revisions"}],"predecessor-version":[{"id":59,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/53\/revisions\/59"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=53"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=53"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=53"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}