Jubilant Life Sciences, a Rs.3,425 crore plus pharma giant, has posted satisfactory performance during the second quarter ended September 2011 and its consolidated net profit moved up by 8 per cent to Rs.79.36 crore from Rs.73.46 crore despite huge foreign exchange loss of Rs.42.60 crore as against Rs.2.91 crore in the corresponding period of last year. Its consolidated net sales increased by 22 per cent to Rs.1048 crore from Rs.859 crore. The earnings per share worked out to Rs.4.98 as compared to Rs.4.61 in the last period.
EBDITA has taken quantum jump of 58 per cent and reached at Rs.241.46 crore during the quarter under review. Its interest burden went up by 100 per cent to Rs.49.69 crore from Rs.24.76 crore and staff cost by 14 per cent to Rs.206.03 crore from Rs.180.81 crore.
The international business from 75 countries contributed 70 per cent to net sales at Rs.730 crore. Sales from regulated markets of USA, Canada, Europe and Japan were together at Rs.608 crore and amounted to 58 per cent of the net sales. Sales from US and Canada grew by 34 per cent followed by 27 per cent YoY growth in Europe and Japan regions and 22 per cent in India. Revenues from Life Science products which stood at Rs.833 crore contributed 79 per cent to sales, It grew 25 per cent YoY from Rs.666 crore in the same period of last year, backed by both volume growth and pricing strength. The share in revenue of Life Sciences Ingredients was 56 per cent at Rs.592 crore, with YoY growth of over 6 per cent. Generics with sales of Rs.241 crore contributed 23 per cent to revenue mix and recorded a growth of 118 per cent YoY.
For the first half ended September 2011, Jubilant's consolidated net sales increased by 18.8 per cent to Rs.1,992 crore from Rs.1,677 crore in the similar period of last year. Its net profit has taken strong jump of 26.3 per cent and reached at Rs.156.48 crore from Rs.123.89 crore. The international business contributed 69 per cent to net sales and reached at Rs.1,383 crore. Sales from regulated markets of USA, Canada, Europe and Japan were together at Rs.1,130 crore and amounted to 57 per cent of the net sales. Sales from Europe and Japan regions grew by 37 per cent followed by 22 per cent growth in US and Canada and 20 per cent in India. Revenues from Life Science Products improved by 22 per cent to Rs.1,572 crore from Rs.1,287 crore. Generic sales moved up by 78 per cent to Rs.373 crore.
Shyam Bhartia, chairman & managing director and Hari Bhartia, co-chairman & managing director, said, “We are happy to share that the company has delivered strong revenue and earnings growth in the second quarter of FY2012 as well as for the first half year. Generics business led the growth in terms of revenue and profitability leading to higher contribution from the segment. Services business witnessed a substantial turnaround with increase in margins and sales growth and is expected to continue the performance due to strong order book and higher capacity utilisation.”
“Our growth momentum should continue in the following quarters backed by the commissioning o new capacities lined up for the year' innovation led new product launches & expansion in focused geographies in products business with sustained higher margins in Service business,” they added.
During the quarter, the company filed 2 DMFs in the US taking the total US DMF filings to 54 and it filed 4 ANDA in the US. The company received approval from ANVISA, Brazil for its formulation plant at Roorkee. The company signed a long term supply in Life Science Ingredients business with a leading international life sciences company. The total value of this 'take or pay' contract is in the range of US$ 80-100 million, to be supplied in 3 years from first quarter of FY13. Further, Jubilant signed a multi-year contract in CMO business with a leading US pharma company to manufacture a prominent over the counter women health and personal care product in North America for the same geography. The total value of this 'take or pay' contract is around US$ 70 million for a period of over 4 years.
Jubilant has recently commissioned multipurpose life science ingredient manufacturing facility at SEZ in Gujarat. The pyridine capacity has been expanded during he quarter, a planned and is now catering to the global requirements from new facility.
The company's standalone performance was not up to the mark and its standalone net profit for the second quarter ended September 2011 declined by over 94 per cent to Rs.5 crore basically due to foreign exchange loss of Rs.41.60 crore as against a gain of Rs.6.24 crore in the similar period of last year. Its interest burden went up to Rs.36 crore as compared to Rs.8.54 crore. Its standalone net sales increased by 16.2 per cent to Rs.628 crore from Rs.541 crore.