Jubilant Life Sciences Ltd (JLSL) has suffered a heavy setback during the year ended March 2012 on account of huge interest burden, higher taxation and exceptional items. Its consolidated net profit declined by 93.7 per cent to Rs.14.58 crore from Rs.229.72 crore in the previous year. However its EBDITA went up smartly by 57.2 per cent to Rs.893 crore from Rs.568 crore.
The company's consolidated net sales increased by 24.3 per cent to Rs.4,254 crore from Rs.3,422 crore mainly due to new launches, better pricing and demand for current niche products in generics business. Its revenues from North America increased by 32 per cent to Rs.1,681 crore and that from Europe and Japan moved up by 49 per cent to Rs.804 crore. Domestics revenue moved up by 18 per cent to Rs.1,267 crore and its revenues from China and emerging markets stood at Rs.289 crore and Rs.237 crore respectively.
The board of directors has recommended equity dividend of 300 per cent for the FY12 amounting to Rs.55.54 crore.
Jubilant's interest cost went up by 98.1 per cent to Rs.209.59 crore. Exceptional loss went up to Rs.348.68 crore as compared to Rs.41.42 crore, which includes exceptional items including amortization of foreign currency monetary item, mark to market, provision for impairment of goodwill, provision for diminution in the value of investment and intangible write off loss. Taxation provision also increased to Rs.68.42 crore from Rs.13.36 crore.
Commenting on the results, Shyam S Bhartia, chairman and managing director and Hari S Bhartia, co-chairman and managing director, said, “Our performance this year was characterised by strong revenue growth of 24 per cent and profit growth of 57 per cent demonstrating robust business momentum across all segments growing globally with a focus on pharmaceutical business. Our international business which accounts for 70 per cent of income recorded 27 per cent growth and with about 50 per cent assets outside India, Jubilant is now truly transformed into a Global Life Sciences Company. Our strategy of continuously moving up the value chain into pharmaceutical and Life Sciences with expanded geographic reach and ongoing investments in R&D for new product launches has yielded excellent results. Consequently, board has proposed 300 per cent dividend for the year.”
During the year it repaid the only outstanding FCCBs of US$ 202 million. It invested Rs.515 crore for expansion of life science ingredients business and strengthening the product portfolio of API and generics business.
Its pharmaceutical business comprising revenue lines of APIs, generics, speciality pharma, CMO, DDDS and healthcare, achieved growth of 41 per cent to Rs.2,175 crore. Pharmaceutical business contributed 51 per cent to its total sales. It has 48 cumulative US ANDA filings of which 19 are approved, 35 dossier filings in EU of which 31 are approved, 9 filings in Canada and 264 in ROW of which 38 are approved.
Its API business achieved 33 per cent growth during FY12 to Rs.449 crore on account of new launches in Sartans, Donepezil in US and Olanzapine in Europe. As at the end of March 2012, the company has 58 DMF filings in the US, 29 CEP in Europe 29 in Canada and 6 in Japan besides over 65 filings in ROW.
The company's specialty pharmaceutical revenues comprising radiopharmaceuticals and allergy products business improved by 25 per cent to Rs.311 crore. CMO of sterile injectibles and non sterile products business revenue improved by 17 per cent to Rs.621 crore. Its income from drug discovery & development solutions up by 16 per cent to Rs.244 crore.
Life science ingredients comprises proprietary products and exclusive synthesis, nutrition ingredients and life science chemicals posted growth of 11 per cent to Rs.2,103 crore and contributed 49 per cent to the revenue mix. However, the divisions' EBDITA declined to Rs.354 crore from Rs.468 crore due to competitive pricing to enhance market share and higher input costs.
Jubilant commissioned its manufacturing facility at SEZ in Gujarat with commercial production of 10,000 TPA niacinamide and an intermediate, 3-cyanopyridine, to cater to the growing global needs of nutrition ingredients.