Jubilant Life Sciences, an integrated pharmaceutical industry player and the largest Custom Research and Manufacturing Services Company in India, has incurred consolidated net loss of Rs.78.39 crore during the third quarter ended December 2011 as against a net profit of Rs.44.11 crore in the corresponding period of the last year. The exceptional items of Rs.155.49 crore includes loss from mark-to-market of Rs.142.92 crore and amortization of foreign currency monetary item translation difference account of Rs.12.57 crore for the third quarter ended December 2011 as compared to gain of Rs.2.30 crore in the similar period of last year.
The company's EBDITA increased sharply by 58.3 per cent to Rs.211.90 crore from Rs.133.83 crore in the corresponding period of last year. Profit before exceptional items, tax and minority interest was Rs.101 crore, recording YoY growth of 81 per cent.
Its consolidated net sales moved up by 25.5 per cent to Rs.1,087 crore from Rs.866 crore. The International business grew 28 per cent YoY, contributing 71 per cent to net sales, at Rs.767 crore. Sales from regulated markets of USA, Canada, Europe and Japan were together at Rs.635 crore, at 58 per cent of the net sales and recorded a growth of 43 per cent YoY.
Commenting on the performance, Shyam S Bhartia, chairman & managing director and Hari S Bhartia, co-chairman & managing director, said, “We are happy to share that the company has reported the highest ever revenue in Q3FY’12 and strong operating earnings in both quarter as well as nine months period. This strong growth was driven by good volumes from increased capacities and margin improvement in Products and Services business. The generics business led revenue and profit growth there by making higher contribution to the mix. We are confident of delivering robust growth in the ensuing period backed by higher capacity utilisations, new product launches across all our products business and sustained higher margins in services business.”
Revenue from Life Science Products which stood at Rs.867 crore contributed 80 per cent to sales, a growth 24 per cent YoY. The share in revenue of Life Sciences Ingredients was 60 per cent at Rs.656 crore with YoY growth of 13 per cent. Generics with sales of Rs.211 crore contributed 19 per cent to the revenue mix and recorded a growth of 78 per cent YoY. Product business EBITDA margins were higher at 23.6 per cent up from 22.8 per cent in Q3’FY11.
Life Science Services Revenue was at Rs.220 crore, a growth of 32 per cent YoY. CMO contributed 14 per cent to the revenue mix at Rs.157 crore, and drug discovery and development solutions reported Rs.59 crore in net sales, contributing over 5 per cent to the revenue mix for the quarter. Services business EBITDA stood at Rs.24 crore and margins at 10.9 per cent witnessed a nine fold increase on YoY basis.
For the nine months ended December 2011, Jubilant Life's net sales stood at Rs.3,080 crore, up by 21 per cent YoY. International business contributed 70 per cent to net sales at Rs.2,151 crore, growing at 22 per cent YoY. Sales from regulated markets of USA, Canada, Europe and Japan were together at Rs.1,778 crore contributing 58 per cent to the revenue mix and depicted a growth of 33 per cent YoY.
Unrealised mark-to-market book loss mainly on account of currency movement of USD, from base of Rs.45 to Rs.53.10, with respect to Rupee Loan swapped into USD Loan at the time of FCCB repayment, amounting to Rs.161crore and unrealised exchange loss of Rs.41 crore on Long Term Foreign Currency Loans amortised over the tenure of the loan as per Clause 46A of AS-11.
After accounting for Exceptional Items of Rs.202 crore, the company has reported net profit and minority interest of Rs.78 crore as against net profit of Rs.168 crore in the similar period for last year.
In solid dosage formulations business, as of December 2011, the company has 19 approved ANDAs and 25 filings pending US FDA approval. In the European market, 30 dossiers stand approved, while 5 are still under approval. 4 products are under approval with Health Canada and the company has more than 150 filings in ROW out of which 28 have already been approved. This strong product pipeline in our solid dosage formulations business is expected to drive the growth momentum of the company
In radio pharmaceuticals business, the company filed for Rubidium Generator (used for PET Myocardial Perfusion Imaging) in US and Canada, approval for which is expected in FY13. The company has the first mover advantage in Canada and would be one of the 2 suppliers in the US market
In the API business, at the end of December 2011, the company has 54 DMF filings in the US, 29 CEPs in Europe, 27 in Canada and 6 in Japan besides over 65 filings in ROW
During the quarter, the company commissioned new capacity at SEZ Gujarat for Niacinamide and it’s Intermediate, 3CyanoPyridine. Commercial supplies from the plants have been well received by the customers in the international market. The plant at SEZ for manufacturing a large agro-intermediate, Symtet is also likely to be commissioned in Q4’FY12. The overall underlying strength of our business has been strong with increasing order book position and capacity utilisation in all our business segments. The company expects to continue to build on the robust sustainable revenue and margin growth momentum recorded for the nine month period. In products business, revenue growth would be on account of utilisation of new capacities, new product launches and geographic expansion while operating profit growth would be backed by improved capacity utilisation, increased vertical integration and favourable prices in certain key products.
In services business, focused margin improvement initiatives, increased capacity utilisation, higher margin product mix and cost optimization would continue to lead to higher profitability.