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News: Granules Q1FY24 revenues de-grew 3% to Rs 986 crore, whereas, its EBITDA de-grew 35% to Rs 137 crore (EBITDA margin contracted 1119 bps to 12%, and gross margins contracted 1280 bps to 44.4%). Subsequently, PAT de-grew 63% to Rs 48 crore. The company operations were impacted by a ransomware attack that has significant effect on addressing regulatory expectations, qualifications, recertifications and fine tuning of quality and production systems (incurred Rs 5 crore in Q1 and lost Rs 150 crore sales)
Views: API/Intermediates/Fixed Dosage represented 30%/15%/55% of the revenues and grew 28%/(37%)/(2%) respectively. Business has recovered from the incident (however, some spillover will happen in Q2 and would delay some anticipated launches) and the short to medium term trajectory remains intact. Net debt stood at Rs 857 crore and Net Debt/EBITDA was at 1.6x. RoCE stood at 9.4%.
Impact: Negative