Jubilant Life Sciences, a Rs.5,100 crore plus pharma major, has posted unsatisfactory performance during the second quarter ended September 2013 on account of higher input costs and forex loss. It incurred a net loss of Rs.80.58 crore during the second quarter as against a net profit of Rs.152 crore in the corresponding period of last year. Its EBDITA also declined by 1.5 per cent to Rs.274.68 crore from Rs.278.83 crore. The company's forex loss amounted to Rs.150.21 crore as against a gain of Rs.47.08 crore. Its interest burden increased by 17.1 per cent to Rs.82.11 crore. EPS worked out to negative Rs.5.06 as compared to positive Rs.9.54 in the last period.
The company's consolidated net sales increased by 17.9 per cent to Rs.1,424 crore from Rs.1,201 crore in the similar quarter of last year. Jubilant's pharmaceutical sales increased by 6.4 per cent to Rs.691.29 crore from Rs.649.54 crore and that of life sciences ingredients went up sharply by 29.9 per cent to Rs.745 crore from Rs.573 crore. Its international revenue reached at Rs.1,070 crore and has contributed 75 per cent to the overall mix.
Revenues from North America improved by 9 per cent to Rs.559 crore, contributing 39 per cent in the overall revenues. Its revenues from Europe and Japan improved by 28 per cent to Rs.306 crore, with a share of 21 per cent to the revenue mix. Its domestic revenues grew by 9 per cent to Rs.366 crore and contributed 25 per cent to the revenue mix.
Shyam S Bhartia, chairman and managing director and Hari S Bhartia co-chairman & managing director, said, “Our performance is shaped by good volumes traction in Q2. Growth will accelerate in H2 on the back of product launches under solid dosage formulations, scale up in speciality pharmaceuticals and volume uptick visible in vitamins and Acetyl business due to higher capacity utilisation levels. FY2014 will be marked by a strong business performance from all key business verticals and the restructuring initiative aimed at de-leveraging the balance sheet, which will drive a focused reduction in debt.”
For the first half ended September 2013, Jubilant's consolidated net sales increased by 12.5 per cent to Rs.2,742 crore from Rs.2,437 crore in the same period of last year. However, it incurred a net loss of Rs.133.20 crore as against a net profit of Rs.157.01 crore mainly due to foreign exchange loss of Rs.261.39 crore as compared to Rs.45.26 crore in the similar period of last year.
Meanwhile, China had imposed 24.6 per cent anti-dumping duty on pyridine imported from the company for domestic sales in China, for which final order is still awaited and the impact of the same is charged in financial results.
To reduce interest burden, the company has decided to transfer pharmaceuticals business under its wholly owned subsidiary Jubilant Pharma Ltd Singapore (JPL). The board has approved transfer of APIs and dosage forms business by way of a slump sale on going concern basis and shares held by it in Jubilant Pharma Holding Inc, USA and Jubilant Pharma NV Belgium, to JPL for a net consideration of Rs.1,145 crore (net of debt). The company received an approval from the FIPB.