Jubilant Organosys Limited, an integrated pharmaceutical industry player and the largest Custom Research and Manufacturing Services Company, has announced the repayment of Foreign Currency Convertible Bond (FCCBs) amounting to US$ 50 million along with the YTM of US$ 19 million. The FCCBs were due for redemption on May 24, 2010.
The company has made the repayment as per schedule, in line with the terms and conditions of the FCCB instrument, underlining the Company's healthy balance-sheet position.
As on March 31 2010, the company's Networth stood at Rs 2,201 crore and the total debt at Rs 3,120 crore compared to Rs 1,543 crore and Rs 3,878 respectively as on March 31, 2009. Its Net Debt (net of cash) presently stands at Rs 2,577 crore as compared to Rs 3,258 crore on March 31, 2009. With this repayment of FCCBs and the pre payment of its Indian Rupee Debt in April 2010, there is a substantial improvement in the financial ratios with a very low average interest cost of 4.51 per cent.
Commenting on the development, Shyam S Bhartia, chairman & managing director and Hari S Bhartia, co-chairman & managing director of Jubilant Organosys said that it is the company's strategy to bring down the leverage to less than a level of 1:1. Accordingly, in addition to its internal accruals the Company raised a QIP of US$ 85 million and met its obligation of FCCB repayment. Going forward as well, Jubilant is very comfortably placed to meet all its debt obligations, including the FCCBs due in the year 2011.
The company's operating outlook is encouraging and it is excited about the opportunities in outsourcing segment, because of its order book position of over US$ 1 billion in CRAMS business. There has been an increase in operating margins in Drug Discovery and Development Solutions (DDDS) business. There has also been a hike in capacity utilization in CMO business, expansion in Pyridines & its derivatives. Further, the company has also launched new APIs, Specialty Pharmaceuticals and Generics. In addition, it has also commissioned additional Niacinamide capacity in Nutritional Ingredients business.
Jubilant Organosys has a presence across the pharmaceutical value chain for providing products and services such as proprietary products, exclusive synthesis, active pharmaceutical ingredients, contract manufacturing of sterile injectables & non-steriles products, radiopharmaceuticals, generic dosage forms, drug discovery services, medicinal chemistry services, clinical research services, Life Science Chemicals, Nutrition Ingredients and Healthcare. The Company also manufactures Agri and Performance Polymer products.