Granules India's Q2 revenue rises 3.4% on higher sales in North America

Granules India reported a 3.4% rise in second-quarter revenue on Thursday as the Paracetamol maker benefited from higher sales in North America.

The generic drug maker's consolidated revenue from operations climbed to 11.89 billion rupees ($142.77 million) in the three months ended Sept.30, from 11.51 billion rupees a year earlier.

Indian generic drug makers are expected to gain from new product launches and easing price competition in the United States, which accounts for the bulk of their revenue, according to analysts.

Revenue from North America, the company's biggest market, grew 11% to 7.99 billion rupees, but declined 8% in Europe to 2.13 billion rupees.

Shares of Granules India rose as much as 5% to 374.80 rupees after the results.

The drug maker's net profit, however, dropped nearly 30% to 1.02 billion rupees ($12.25 million) from 1.45 billion rupees as total expenses rose 9.3%.

Granules' three main segments, which focus on making active pharmaceutical ingredients (API), pharmaceutical formulation intermediates and finished dosages, accounted for 25%, 12%, and 62%, respectively, of revenue from operations.

The company, which holds a 30% share of the global market for Paracetamol, makes the drug's API and finished dosage, ready for consumption in European countries.

Its shares gained 19.5% in the September-quarter, outperforming the Nifty pharma index, which climbed 12%.

Rival Glenmark Life Sciences last month reported an 11.1% rise in second-quarter profit.