In a call with analysts, Granules management were positive about the company's performance, saying that the firm's current quarter met the guidance. On the coronavirus impact, management noted, "There definitely will be some impact, but we expect the year to close by crossing guidance of achieving a bottom line of Rs 300 crores".
Despite the situation in China, Granules noted minor effects - while production and dispatches ran normally, with the introduction of the national lockdown, some of the trucks that have been dispatched will not reach the ports in time. So this month’s sales will be impacted.
If the lockdown is lifted on the 14th of April as proposed, Granules India said they would be able to make up and achieve normal numbers.
Even if it continues till the end of April, the company says it would still be able to achieve the guidance of 25% CAGR . Production slowed down from last Sunday, but the situation according to management is stable, as the government had declared pharmaceutical manufacturing as an essential activity and allowed work. However, for the period of the 21 day lock down, till the 14th of April, the pace has been slower due to shortage of staff and the social distancing norms.
Local logistics for incoming and outgoing material has been a challenge - but incoming material from China is normal till the Indian ports. The local logistics are the key bottleneck.