Hyderabad-based pharmaceutical company Granules India on Thursday informed the stock exchanges about an information technology security breach. The stock of Granules India tumbled 2 percent in Thursday's trade. At 12:33 pm, the script was trading 1.94 percent lower at Rs 273.50 apiece on the BSE.

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The company said that it was investigating the matter and actions were being taken to address the incident.

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"Please be informed that an information security incident has occurred at the company and the impacted IT assets have been isolated. The company is investigating the matter with utmost priority. The appropriate containment and remediation actions are being taken in a controlled manner to address the incident," the firm said in a regulatory filing.

This is the second pharma company to see a similar incident within a year. Back in March, drug major Sun Pharma reported an "information security incident" at the company. As many as 25 days later, a ransomware group claimed responsibility for the information breach.

As a result, Sun Pharma's business operations were impacted, due to which, the revenue in some businesses will be lower. The company added that it is currently unable to determine other "potential adverse impacts" of the incident, including other security incidents or the possibility of litigation.

Expenses in connection with the incident and the subsequent remediation will also be borne by the company.

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Granules Q4 earnings

Granules India’s net profit increased by 8 percent to Rs 120 crore in the fourth quarter that ended March 31, 2023, compared with Rs 111 crore in the same period last year, the company said in a filing recently.

Revenue of the Hyderabad-based company surged 16 percent to Rs 1,195 crore as compared to Rs 1,030 crore in the year-ago period. The revenue growth was primarily driven by higher sales in key geographies including the US and Europe. Revenue share from the US increased to 54 percent in the quarter under review as against 48 percent in the same period last year.

First Published:May 25, 2023 12:43 PM IST