Granules India Ltd. — Interim / Quarterly Report 2022

Nov 12, 2021

REGISTERED OFFICE

GRANULES INDIA LTD., 2nd Floor, 3rd Block, My Home Hub, Madhapur, Hyderabad - 500 081, Telangana, India. Tel: +91 40 69043500, Fax: +91 40 23115145, mail@granulesindia.com, www.granulesindia.com CIN: L24110TG1991PLC012471

Date: 12' November 2021

To National Stock Exchange of India Limited & BSE Limited. Scrip Code: NSE- GRANULES; BSE-532482.

Sub: Outcome of 207" Board meeting dated 12 November 2021. Ref: Regulation 30 and 33 of the Listing Regulations.

Dear Sir,

The Board of Directors at their meeting has -

• 1. Approved the Un-Audited financial results (Standalone & Consolidated) for the second quarter ended September 30, 2021, prepared under Indian Accounting Standards (Ind - AS).
• 1. Declared second interim dividend of 25 paise per share of face value of Re. 1/- each representing 25% of paid-up capital for the financial year 2021-22.
• 1. Fixed the record date as November 25, 2021, for the purpose of payment of second interim dividend for the financial year 2021-22.

Pursuant to regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), we are enclosing the Un-Audited financial results (Standalone and Consolidated) of the Company for the second quarter ended September 30, 2021.

We also enclose a copy of the Limited Review Report of the Statutory Auditors of the Company, as required under Regulation 33 of the Listing Regulations and press release.

The meeting of the Board of Directors of the Company commenced at 10.00 A.M and concluded at 05.00 P.M.

Request you to take the above information on record.

Thanking You. Yours faithfully,

For GRANULES INDIA LIMITED - ~ ar ae Chet Pare Ge yr CHAITANYA TUMMALA ~ (COMPANY SECRETARY: COMPLIANCE OFFICER)

Encl: As above

B S R & Associates LLP

Chartered Accountants

Salarpuriya Knowledge City, Orwell, B Wing, 6th Floor, Unit-3, Sy No. 83/1, Plot No. 02, Raidurg, Hyderabad – 500 081 - India

Telephone: +91 40 7182 2000 Fax: +91 40 7182 2399

Limited review report on unaudited quarterly standalone financial results and standalone yearto-date results under Regulation 33 of the Listing Regulations

To

Board of Directors of Granules India Limited

• 1. We have reviewed the accompanying Statement of unaudited standalone financial results of Granules India Limited ("the Company") for the quarter ended 30 September 2021 and year to date results for the period from 1 April 2021 to 30 September 2021 ("the statement").
• 1. This Statement, which is the responsibility of the Company's management and approved by the Board of Directors, hasbeenpreparedinaccordancewiththe recognitionand measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. Our responsibility is to issue a report on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Based on ourreview conducted as above, nothing has come to our attention that causes usto believe that the accompanying Statement, prepared in accordance with applicable accounting standards and other recognised accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it isto be disclosed, or that it contains any material misstatement.

For B S R & Associates LLP Chartered Accountants (Firm's Registration No. 116231W/W-100024)

SRIRAM MAHALINGAM Digitally signed by SRIRAM MAHALINGAM Date: 2021.11.12 16:04:31 +05'30'

Sriram Mahalingam

Partner Membership No.: 049642 UDIN: 21049642AAAAFA5707

Place: Palakkad, Kerala Date: 12 November 2021

( E& GRANULES GRANULES INDIA LIMITED Madhapur, Hyderabad 500 081 CIN:L24110TG1991PLC012471 Regd Office : 2nd Floor, 3rd Block, My Home Hub

(	GRANULESE&	Regd Office : 2nd Floor, 3rd Block, My Home Hub	GRANULES INDIA LIMITEDMadhapur, Hyderabad 500 081CIN:L24110TG1991PLC012471				Rs in lakhs
	Statement of Standalone Unaudited Results for the quarter and half year ended September 30, 2021					Half Year ended	Year ended
slNo.	Particulars	30.09.2021	Quarter ended30.06.2021	30.09.2020	30.09.2021	30.09.2020	31.03.2021
	Income	Un-Audited	Un-Audited	Un-Audited	Un-Audited	Un-Audited	Audited
	1[Revenue from operations2 Other income	70,369.40428,32	73,211.59735.57	83,449.84306.91	143,580.99916.94	157,742.00771.30	313,498.241,372.32
	3] Total income (1+2)	70,797.72	73,947.16	83,756.75	144,497.93	158,513.30	314,870.56
	4) Expenses
	(a)Cost of materials consumed.(b)Changes in inventories of work in progress and finished goods	41,481.92(2,128.56)	43,251.32(4,158.13)	39,832.77868.01	84,733.24(6,286.68)	75,812.29(1,062.62)	150,219.35744.93
	(c)Employee benefits expense	6,429.44	7,121.46	8,312.81	13,550.90	16,508.33	31,825.23
	(d)Finance costs(c)Depreciation and amortisation expense	401.173,185.57	538,383,149.57	623.122,959.05	939.556,335.14	1,207.915,816.99	2,377.3911,845.14
	(f)Other expenses	15,245.30	11,993.40	10,458.35	26,991.75	22,775.02	44,571.50
	'Total expenses5 Profit before tax (3-4)	64,614.846,182.88	61,896.0012,051.16	63,054.1120,702.64	126,263.9018,234.03	121,057.9237,455.38	241,583.5473,287.02
	6 Tax expense
	a) Current taxb) Deferred tax	1,600.55(27.23)	3,119.66(53.07)	5,456.29(200.97)	4,720.21(80.30)	11,180.30(1,672.34)	20,231.19(1,697.38)!
	c) Adjustment of tax relating to earlier periods	-	-	-		:	(525.10)
	'Total tax expense7 Profit for the period (5-6)	1,573.324,609.56	3,066.598,984.57	5,255.3215,447.32	4,639.9113,594.12	9,507.9627,947.42	18,008.7155,278.31
	8] Other comprehensive income (net of tax)
	(a) (i) items that will not be reclassified to profit or loss(ii) income tax on (i) above	::	:-	--	:	:	(36.69)9.23
	(b)(i) items that will be reclassified to profit or loss	1,769.84	(1,081.05)	(640.52)	688.79	(1,614.28)	(699.98)
	(ii) income tax on (i) aboveTotal other comprehensive income, net of tax	(445.43)1324.41	272.08(808.97)	161.21(479.31)	(173.35)515.44	406.29(1,207.99)	176.17(551.27)
	9 Total comprehensive income (7+8)10 Paid-up equity share capital (Face Value of Rs.1/- per share)	5,933.972,476.75	8,175.602,476.75	14,968.012,476.41	14,109.562,476.75	26,739.432,476.41	54,727.042,476.75
	11} Other equity						213,785.42
	12 Earnings per share (Face value Rs. 1/- each)(a) Basic (in Rs.)	1.86	3.63	6.24	5.49	1115	22.18
	(b) Diluted (in Rs.)	1.85	3.61(Not annualised) (Not annualised)	6.21(Not annualised)	5.46(Not annualised)	11.08(Not annualised)	22.09(Annualised)

	Standalone statement of Assets and Liabilities :	Rs in lakhsAsat	Asat
No.	Sl, Particulars	September 30,2021}Un-Audited	March 31,2021Audited
I	JASSETSNon-current assets
	a) Property, plant and equipment'b) Right-of-use assetsc) Capital work-in-progress	92,873.87974.2728,243.65	91,690.72939.9314,658.41
	d) Other intangible assetse) Intangible assets under development	6,408.971,580.87	5,869.361,742.77
	f) Financial assetsi) Investmentsii) Loans	$9,653.121,119.77	59,153.121,011.21
	iii) Othersg) Other non-current assets	1,216.455,421.79	1,191.084,240.01
	Total non-current assetsCurrent assets	197,492.76	180,496.61
	a) Inventoriesb) Financial assetsi) Trade receivables	53,207.0499,196.39	46,169.68101,423 62
	ii) Cash and cash equivalentsiii) Bank balances other than cash and cash equivalents above	7,381.8727,039.69	2,003.2922,119.38
	iv) Loansy) Other financial assetsc) Other current assets	31.50136,6314,924.07	27.7138.1716,004.89
	Total current assetsTOTAL ASSETS	201,917.19399,409.95	187,786.74368,283.35
IX	EQUITY AND LIABILITIESEquity
	a) Equity share capitalb) Other equityTotal equity	2,476.75225,798.80228,275.55	2,476.75213,785.42216,262.17
	Liabilities'Non-current liabilities
	a) Financial liabilitiesi) Borrowings	28,600.28	33,380.74
	ii) Lease liabilities'b) Provisions	674.352,941.38	733,592,484.22
	c) Deferred tax liabilities (net)Total non-current liabilities	2,682.3834,898.39	2,589.3239,187.87
	'Current liabilitiesa) Financial liabilitiesi) Borrowings	67,834.01	50,464.40
	ii) Lease liabilitiesiii) Trade payables	388.91	283.45
	(a) Total outstanding dues of micro enterprises and small enterprises(b) Total outstanding dues of creditors other than micro enterprises and small enterprisesiv) Other financial liabilities	1,035.6054,749.069,752.25	324.6950,440.477,213.87
	b) Other current liabilitiesc) Provisions	1,702.16682.13	1,966.85682.13
	d) Current tax liabilities (net)'Total current liabilitiesTotal liabilities	91.89136,236.01171,134.40	1,457.45112,833.31152,021.18

Statement of standalone cash flow :		Rs in lakhs
	For the half year,ended September]30, 2021	For the half year endedSeptember 30, 2020)	For the year ended March31, 2021
Cash flow from operating activities	Un-Audited	Un-Audited	Audited
Profit before taxAdjustments to recancile profit before tax to net cash flowsDepreciation and amortisation expense	18,234.036,335.14	37,455.385,816.99]	73,287.0211,845.14
Bad debts written offAllowance for doubtful trade receivables	-523,88	-921.24	162.22749.95
Allowance for doubtful advancesLoss.on sale of fixed assets (net)	-436.66	-0.01	169,5336.84
Changes in fair value of cashflow hedgesNet loss/(gain) on foreign exchange fluctuations (unrealised)Share based compensation expense	674.08(275.22)59.54	461.522,014.9450.00	1,204.52(0.77)151.24
Interest expenseInterest income	939.55(573.25)	1,207.91(760.16)	2,377.39(1,323.98)
Operating profit before working capital changesMovements in working capital:Decrease/(increase) in trade receivables	26,354.413,151.68	47,167.83(38,272.68)	88,659.10(38,613.01)
Increase in inventoriesDecrease/(increase) in other assets	(7,037.36)1,051.66	(5,673,20)(1,199.07)	(11,774.94)(4,335.91)
Increase in trade payables, other liabilities and provisionsCash generated from operations	3,442.6026,962.99	22,574.9524,597.83	22,124.7156,059.95
Taxes paid (net of refunds)Net cash generated from operating activities(A)	(6,085.77)20,877.22	(7,665.91)16,931.92	(18,594.11)37,465.84
Cash flow from investing activitiesPurchase of fixed assets including capital work-in-progress, capital advances and payables for capital goods	(18,815.71)	(7,497.09)	(22,262.59)
Proceeds from sale of fixed assetsPlacement of bank depositsPurchase of investments	21,29(4,923.32)-	o.116,163.55(20,00)	32.71(12,317.76)(20.00)
Investment in subsidiariesProceeds from sale of associate	(500.00)-	:10,985.24	(2,500.00)10,985.24
Loans given to subsidiariesInterest receivedNet cash used in investing Activities(B)	(102.48)573.00(23,747.22)	:500.5710,132.38	(77.51)2,898.04(23,261.87)
Cash flow from financing activities
Proceeds from issuance of sharesRepayment of borrowings	321.05(4,887.38)	381.52(5,197.26)	414,50(10,153.55)
Proceeds of short-term borrowings, netRepayment of lease liability (including related interest)Payment towards Buyback including transaction cost	16,498.81(206.35)-	272.32(109.69)(17,714.41)	2,960.23(271.79)(17,714.41)
Interest paidDividend paid on equity shares including tax thereon	(1,078.31)(2,477.10)	(1,177.68)(1,236.48)	(2,383.78)(2,472,08)
Net cash used in financing activities(Cc)(A+B+C)'Net increase/(decrease) in cash and cash equivalents	8,170.72§,300.72	(24,781.68)2,282.62	(29,620.88)(15,416.91)
Effect of exchange differences on translation of foreign currency cash and cash equivalentsCash and cash equivalents at the beginning of the periodCash and cash equivalents at the end of the period	77.862,003.297,381.87	(21.31)17,432.4719,693.78	(12.27)17,432.472,003.29

Notes:

1 The above standalone un-audited financial results for the quarter and half-year ended September 30, 2021 have been reviewed by the Audit Committee on November 12, 2021 and approved by the Board of| Directors at their meeting held on November 12, 2021

2 The standalone un-audited financial results of the Company have been prepared in accordance with the Indian Accounting Standards prescribed under section 133 of the Companies Act, 2013 ("the Act") read with relevant rules issued thereunder ("Ind AS") and other accounting principles generally accepted in India and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

3 The Auditors of the Company have carried out Limited Review of the financial results for the quarter and half-year ended September 30, 2021.

4 As the out-break continues to evolve, the company will continue to closely monitor any material changes to future economic conditions. Based on the assessment done by the management of the Company, there} is no significant / material impact of COVID-19 on the results for the quarter and half-year ended September 30, 2021 and year ended March 31,2021.

5 The Company operates in one reportable business segment of Pharmaceutical products including ingredients and intermediaries.

6 The Board of Directors at their meeting held on November 12, 2021 has declared second interim dividend of 25 paise per equity share of Re.1/- each.

7 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the code becomes effective.

8 On March 24, 2021, the Ministry of Corporate Affairs (MCA) through notification, amended Schedule II to the Companies Act, 2013, applicable for financial period commencing from April 01, 2021. The! Company has incorporated the changes as per the said amendment in the above results and has also changed comparative numbers wherever it is applicable.

9 The figures for the corresponding previous periods have been reclassified/regrouped wherever necessary, to make them comparable

Place : Hyderabad
Date : November 12, 2021

for and on behalf of the hi Board ee

B S R & Associates LLP Chartered Accountants

Salarpuriya Knowledge City, Orwell, B Wing, 6th Floor, Unit-3, Sy No. 83/1, Plot No. 02, Raidurg, Hyderabad – 500 081 - India

Limited review report on unaudited quarterly consolidated financial results and consolidated yearto-date results under Regulation 33 of the Listing Regulations

Telephone: +91 40 7182 2000 Fax: +91 40 7182 2399

To

Board of Directors of Granules India Limited

• 1. We have reviewed the accompanying Statement of unaudited consolidated financial results of Granules India Limited ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group") for the quarter ended 30 September 2021 and year to date results for the period from 1 April 2021 to 30 September 2021 ("the Statement"), being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations').
• 1. This Statement, which is the responsibility of the Parent's management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

1. The Statement includes the results of the following entities:

Name of the Entity	Relationship
Granules USA Inc.	Wholly owned subsidiary
Granules Pharmaceutical Inc.	Wholly owned subsidiary
Granules Europe Limited	Wholly owned subsidiary
Granules Life Sciences Private Limited	Wholly owned subsidiary

1. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of the other auditors referred to in paragraph 6 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

Registered Office:

B S R & Associates LLP

Limited review report (unmodified) on unaudited quarterly consolidated financial results and consolidated year-to-date results of Granules India Limited under Regulation 33 of the Listing Regulations

1. We did not review the interim financial results of two subsidiaries included in the Statement, whose interim financial results reflect total assets of Rs 120,035.51 lakhs as at 30 September 2021 and total revenues of Rs 36,853.74 lakhs and Rs 69,934.75 lakhs, total net profit after tax of Rs 1,856.86 lakhs and Rs 3,731.86 lakhs and total comprehensive income of Rs 1,726.65 lakhs and Rs 4,702.71 lakhs, for the quarter ended 30 September 2021 and for the period from 1 April 2021 to 30 September 2021, respectively, and cash outflows (net) of Rs. 724.50 for the period from 1 April 2021 to 30 September 2021, as considered in the consolidated unaudited financial results. These interim financial results have been reviewed by other auditors whose reports have been furnished to us by the management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports ofthe other auditors and the procedures performed by us asstated in paragraph 3 above.

Our conclusion on the Statement is not modified in respect of the above matters.

1. The Statement includes the interim financial information of two subsidiaries which have not been reviewed, whose interim financial results reflect total assets of Rs. 2,990.36 as at 30 September 2021 and total revenue of Rs Nil and Rs Nil, total net loss after tax of Rs 45.30 lakhs and Rs 85.36 lakhs and total comprehensive loss of Rs 16.78 lakhs and Rs 72.85 lakhs for the quarter ended 30 September 2021 and for the period from 1 April 2021 to 30 September 2021, respectively, and cash outflows(net) of Rs. 417.89 for the period from 1 April 2021 to 30 September 2021, as considered in the Statement. According to the information and explanations given to us by the management, these interim financial results are not material to the Group.

Our conclusion on the Statement is not modified in respect of the above matter.

For B S R & Associates LLP Chartered Accountants ICAI Firm Registration No.: 116231W/ W-100024

SRIRAM MAHALINGAM Digitally signed by SRIRAM MAHALINGAM Date: 2021.11.12 16:06:21 +05'30'

Sriram Mahalingam Partner Membership No.: 049642 UDIN: 21049642AAAAFB6207

Place: Palakkad, Kerala Date: 12 November 2021

GRANULES INDIA LIMITED Regd Office : 2nd Floor, 3rd Block, My Home Hub Madhapur, Hyderabad 500 081 CIN:L24110TG1991PLC012471

		GRANULES INDIA LIMITED
GRANULES	Regd Office : 2nd Floor, 3rd Block, My Home Hub	Madhapur, Hyderabad 500 081CIN:L24110TG1991PLC012471
				1		Rs in lakhs
Particulars				Hall1.2021Un-Audited	ended30,09,2020	Year ended31
IncomefromI2 Other income				17.75950.33
3 Total income(1+:of materials consumed			41,801.81		79,161.97
of work ininbenefitscosts				62	L734.0919I
and amortisationTotal				SI147,457.95	7,013.8397	5,
before tax36 TaxCurrent tax				27,310.1353	1461
taxof taxto earlier'otal tax				1,927.54
for the7income8] Otherofitems that will not be reclassified toor loss
income tax on (i) aboveitems that will be reclassified toor lossincome tax on (i) aboveotherof.				1,672.15173.35
incomeshareValue of Rs.1/-10ii						159,027.679,900,628.4120,255.74
(Face value Rs. I/- each.shareBasic (in Rs.Diluted (in Rs.
12

	Consolidated Statement of Assets and Liabilities :		Rs in lakhs
I	SI.No. ParticularsASSETS	AsatSeptember 30, 2021Un-Audited	AsatMarch 31, 2021Audited
	Non-current assetsa) Property, plant and equipmentb) Right-of-use assets	109,685.501,002.53	106,126.47995,68
	c) Capital work-in-progress d) Other intangible assetse) Intangible assets under development	34,453.0225,912.275,070.59	18,477.1726,077.425,431.00
	f} Financial assetsi) Investmentsii) Loansiti) Others	1,924.29-1,243.96	1,898.9495.191,218.22
	2) Deferred tax assetsh) Income tax assets (net)i) Other non-current assets	149.80601.6511,411.61	77.32568.46)10,679.00.
	Total non-current assetsCurrent assetsa) Inventories	191,455,2289,384.76	171,644.8778,217.85
	b) Financial assetsi) Trade receivablesii) Cash and cash equivalentsiii Bank balances other than cash and cash equivalents above	78,604,928,419.7927,439.54	76,542.014,183.5922,920.80)
	iv) Loans¥y) Other financial assetsc) Other current assets	1,029.33171,5515,486,90	999.3456.9516,779.63
Tl	Total current assetsTOTAL ASSETSEQUITY AND LIABILITIES	220,536.79.411,992.01	199,700.17371,345.04
	Equitya) Equity share capitalb) Other equity	2,476.75233,623.56	2,476.75214,850.68
	Total equityLiabilities'Non-current liabilities	236,100.31	217,327.43.
	a) Financial liabilitiesi) Borrowingsit) Lease liabilitiesb) Provisions	28,600.28674,352,941.38	33,380.74733,592,484.22
	c) Deferred tax liabilities (net)'Total non-current liabilities	2,300.8634,516.87	109.2536,707,80)
	Current liabilitiesa) Financial liabilitiesi) Borrowingsii) Lease liabilities	67,834.01419.10	50,464.40)442.25
	iil) Trade payables(a) Total outstanding dues of micro enterprises and small enterprises(b) Total outstanding dues of creditors other than micro enterprises and small enterprises	1,035.6057,894.53	324.69)53,780.06
	iv) Other financial liabilitiesb) Other current liabilities¢) Provisionsd) Current tax liabilities (net)	11,010.761,771.40682.13727.30	8,178,8522,018.68682.131,518.78

Statement of Consolidated cash flow :		For the half year,ended September30, 2021	For the half year]ended September30, 2020)	For the year endedMarch 31, 2021)
Cash flow from operating activitiesProfit before taxAdjustments to reconcile profit before tax to net cash flows		Un-Audited27,310.13	Un-Audited36,649.14	Audited70,436.43
Depreciation and amortisation expenseBad debts written offAllowance for doubtful trade receivables		7,922.23:523.88	7,013.8316,80921.24	15,146.25246.31749.95
Allowance for doubtful advancesLoss on sale of fixed assets (net)Changes in fair value of cashflow hedgesNet loss/(gain) on foreign exchange fluctuations (unrealised)		-436.66674.08(276.13)	-0.01461.522,029.65	169.5339.191,204.5223.56
Write off of Intangible assets under developmentShare based payment expenseInterest expense		59.541,225.61	-97.121,222.19	72.89399.862,628.40
Interest incomeOperating profit before working capital changesMovements in working capital:		(604.28)37,271.72	(645.63)47,765.87	(1,237.87)89,879.02
Increase in trade receivablesIncrease in inventoriesDecrease/(increase) in other assetsIncrease in trade payables, other liabilities and provisions		(1,000, 12)(10,643.45) 1,347.782,460.63	(15,827.51)(18,424.57)(1,143.73)14,917.13	(3,639.03)(34,588.76)(4,550.37)15,283.61
Cash generated from operationsTaxes paid (net of refunds)Net cash generated from operating activities	(A)	29,436.56(6,100.97)23,335.59	27,287.19(7,847.98)19,439.21	62,384.47(19,136.69)43,247.78
Cash flow from investing activitiesPurchase of fixed assets including capital work-in-progress, capital advances and payables for capital goodsProceeds from sale of fixed assets		(23,140.21),21,29)	(10,482.44)OL	(27,134.16)32.71
Placement of bank depositsPurchase of investmentsProceeds from sale of associateInterest received		(4,521.75)-*607.39	6,163.55(20,00)10,985.24616.05	(13,119.18)(20,00)10,985,241,541.89
Net cash used in investing activitiesCash flow from financing activities	(B)	(27,033.28)	7,262.51	(27,713.50)
Proceeds from issuance of sharesRepayment of borrowingsProceeds of short-term borrowings, netRepayment of lease liability (including related interest)		321.05(4,887.38)16,498.81(242.16)	381.52(5,197.26)1,608.72(147.23)	414,50(10,153.55)2,960.23(338.40)
Payment towards Buyback including transaction costInterest paidDividend paid on equity shares including tax thereon		-(1,357.19)(2,477.10)	(17,714.41)(1,184.76)(1,236.48)	(17,714.41)(2,627.60)(2,472.08)
Net cash used in financing activitiesNet inerease/(decrease) in cash and cash equivalentsEffect of exchange differences on translation of foreign currency cash and cash equivalentsCash and cash equivalents at the beginning of the period	(Cc)(A+B+C)	7,856.034,158.3477.864,183.59	(23,489.90)3,211.82(21.31)18,592.89	(29,931.31)(14,397.03)(12.27)18,592.89
Cash and cash equivalents at the end of the periodNote: The above Statement of Cash flow has been prepared under the 'Indirect Method! as set out in Ind AS 7, 'Statement of Cash Flows'		8,419.79	21,783.40	4,183.59
Notes:1 The above consolidated un-audited financial results for the quarter and half year ended September 30, 2021 have been reviewed by the Audit Committee on November 12, 2021 and approved by the Board of Diat their meeting held on November 12, 2021,2 The consolidated un-audited financial results of the Company have been prepared in accordance with the Indian Accounting Standards prescribed under section 133 of the Companies Act, 2013 ("the Act") read with
relevant rules issued thereunder ("Ind AS") and other accounting principles generally accepted in India and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.3 The Auditors of the Company have carried out Limited Review of the financial results for the quarter and half year ended September 30, 2021,4 The subsidiaries considered for the consolidated financial statements for the quarter and half-year ended September 30, 2021 are Granules USA Inc., Granules Pharmaceuticals Inc., Granules Europe Limited and
Granules Life Sciences Private Limited (together known as "Subsidiaries").5 The Group operates in one reportable business segment of Pharmaceutical products including ingredients and intermediaries,6 As the out-break continues to evolve, the company will continue to closely monitor any material changes to future economic conditions. Based an the assessment done by the management of the Company, there is nosignificant / material impact of COVID-19 on the results for the quarter and half-year ended September 30, 2021 and year ended March 31,2021.
7 The Board of Directors at their meeting held on November 12, 2021 has declared second interim dividend of 25 paise per equity share of Re. 1/- each,8 The Code on Social Security, 2020 ("Code") relating to employeeduring employand post-emplbenefitsbenefitsGazette of India. However, the date on which the code will come into effect has not been notified. The Group will assess the impact of the Code when it comes into effect and will record any related impact in theperiod the code becomes effective.			received Presidential assent in September 2020. The Code has been published in the
9 On March 24, 2021, the Ministry of Corporate Affairs (MCA) through notification, amended Schedule I to the Companies Act, 2013, applicable for financial period commencing from April OL, 2021. The Group hasincorporated the changes as per the said amendment in the above results and has also changed comparative numbers wherever it is applicable.10 The figures for the corresponding previous periods have been reclassified/rezrouped wherever necessary, to make them comparable.
11 Standalone results for the quarter / year ended are as under -ParticularsQuarter ended30.06.202130.09.2021	30.09.2020	30.09.2021	Half Year ended30.09.2020	Rs in lakhsYear ended31.03.2021
Un-AuditedUn-AuditedRevenue from Operations70,369.4073,211.59	Un-Audited83,449.84	Un-Audited143 580.99	Un-Audited157,742.00	Audited313,498.24
6,182.88Profit Before Tax12,051.16Profit After Tax4,609.568,984.57	20,702.6415,447.32	18,234.0313,594.12)	37,455.3827,947.42	73,287.02,55,278.31Tm
pa7.\				fpr and on behalfof the Board
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						Rs in lakhs
Particulars		Quarter ended			Half Year ended	Year ended
	30.09.2021	30.06.2021	30.09.2020	30.09.2021	30.09.2020	31.03.2021
	Un-Audited	Un-Audited	Un-Audited	Un-Audited	Un-Audited	Audited
Revenue from Operations	70,369.40	73,211.59	83,449.84	143 580.99	157,742.00	313,498.24
Profit Before Tax	6,182.88	12,051.16	20,702.64	18,234.03	37,455.38	73,287.02,
Profit After Tax	4,609.56	8,984.57	15,447.32	13,594.12)	27,947.42	55,278.31Tm

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Press Release For Immediate Release

Granules India reports Income from operations at INR 888 Cr up 4% YoY, EBITDA at INR 151 Cr, EBITDA Margin at 17% PAT at INR 81 Cr, down 51% YoY

Hyderabad, 12th November 2021: Granules India Ltd., a vertically integrated pharmaceutical company, today announced its financial results for the quarter and half-year ended September 30, 2021.

Q2FY22 Financial Highlights (All numbers in INR Cr except Margins)

CONSOLIDATED FINANCIALS	Q2FY22	Q2FY21	Growth(YoY)
Income from Operations	888	858	4%
Operating Profit	151	256	(41%)
Operating Profit Margin	17%	30%
PAT	81	164	(51%)
Net Profit Margin	9%	19%

Financial and Business Highlights for Q2FY22

• Granules Q2 business was unfavourably impacted due to difficulties in procuring Raw materials, mainly from China due to Chinese dual energy policy and increased procurement prices for almost all items due to interruptions in supply of materials and increased logistics costs arising out of vessel shortage and port congestion in various part of the world
• Q2FY22 revenues at INR 888 Crs, growth of 4% YoY. EBITDA stood at INR 151 Crs, down by 41% YoY. EBITDA margins stood at 17% compared to 30%. PAT at INR 81 Crs, down by 51%
• Gross margin % drop from 57.9% to 50.9% was on account of reduction in margins of all major products especially Paracetamol due to increase in KSM prices and increased logistics cost. Price pressure in USA has also resulted in marginal drop in Gross margin for Core products. The entire loss of Gross margin for the current quarter was mainly absorbed by Granules. We expect to pass on some of the increases to our customers from Q3FY22 onwards.
• Pharmaceutical Formulation Intermediates (PFI) segment grew 10% YoY, Finished Dosage (FD) grew 18% YoY and, Active Pharmaceutical Ingredients (API) segment down by 25% YoY mainly due to Paracetamol KSM supply disruption.

CIN: L24110TG1991PLC012471 / Granules India Limited: 2nd Floor, Block 3, My home hub Madhapur, Hyderabad 500081

• During the quarter:
  • o Revenue share from other molecules has increased to 19% and Revenue share of FD has increased to 57% consistent with our strategy
  • o We filed one ANDA, one European Dossier, one US DMF and one CEP.
  • o R&D expenses has significantly gone up in line with our accelerated R&D strategy.
• The Board of Directors has declared its second interim dividend of 25 paise per equity share of INR 1/- each.

Commenting on the results, Dr. Krishna Prasad Chigurupati, Chairman & Managing Director of Granules India Limited said, "The last quarter was one of the most challenging quarters that we have witnessed in the recent past. We were unable to pass on our cost increases to our customers.

Based on ongoing discussions with customers, we are confident of passing on our price increases substantially from Q3FY22 onwards. We expect that our gross margins will see a recovery and we believe that our performance for the rest of the fiscal will be substantially better.

We have been taking all necessary measures to de-risk ourselves from supply chain disruptions and expect to see these efforts bear fruits next fiscal onwards.

Due to the current volatile and uncertain environment, we believe that we will not be able to meet our guidance, and it will not be prudent on our part to give any future guidance until the situation becomes stable. All our projects and plans are on track, and I am very confident that the current fiscal will be a one off and not affect our long-term growth strategy and aspirations."

Segmental, Molecule and Geographical Mix for Q2 FY22 (All numbers in INR Cr)

Segmental Mix	Q2FY22	Q2FY21
FD	507	430
PFI	191	173
API	190	255

Geographical Mix	Q2FY22	Q2FY21
North America	508	472
Europe	182	154
Latin America	63	66
India	98	118
ROW	37	48

CIN: L24110TG1991PLC012471 / Granules India Limited: 2nd Floor, Block 3, My home hub Madhapur, Hyderabad 500081

Molecule Mix %	Q2FY22	Q2FY21
Paracetamol	33%	33%
Metformin	28%	27%
Ibuprofen	14%	17%
Guaifenesin	2%	5%
Methocarbamol	4%	2%
Others	19%	16%

About Granules India Ltd. (BSE: 532482, NSE: GRANULES)

Granules India Limited, incorporated in 1991 is a vertically integrated fast growing Indian pharmaceutical company headquartered at Hyderabad with best in class facilities and commitment to operational excellence, quality, and customer service. We are among the few pharmaceutical companies in the world to be present in the manufacturing of entire value chain – from Active Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation Intermediates (PFIs) and Finished Dosages (FDs). Our products are being distributed to over 300+ customers in regulated and semi-regulated markets with a global presence extending to over 75+ countries with offices across India, US and UK The Company has 7 manufacturing facilities out of which 6 are located in India and 1 in USA and has regulatory approvals from US FDA, EDQM, EU GMP, COFEPRIS, WHO GMP, TGA, K FDA, DEA, MCC and HALAL.

Contacts:

Krishna Raghunathan Chaitanya Tummala VP – Finance and Investor Relations Company Secretary 040-69043573 040-69043614 krishna.raghunathan@granulesindia.com chaitanya.tummala@granulesindia.com

Safe Harbor

This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors. Granules India Ltd., its directors and any of the affiliates or employee is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

CIN: L24110TG1991PLC012471 / Granules India Limited: 2nd Floor, Block 3, My home hub Madhapur, Hyderabad 500081