J B Chemicals and Pharmaceuticals has registered lower net profit during the third quarter ended December 2016 and its net profit declined by 23.7 per cent to Rs.35.76 crore from Rs.46.88 crore in the corresponding period of last year. Its net sales also declined by 1.6 per cent to Rs.270 crore from Rs.275 crore. With lower net profit, EPS declined to Rs.4.21 from Rs.52 in the last period.

The poor performance impacted immediately on scrip movements and the company's share declined by over Rs.14 to Rs.334.90 on BSE. J B Chemical scrip touched to its yearly highest level at Rs.403.

Its domestic formulations business continued to do well. During the quarter, this business achieved growth of 12.3 per cent at sales of Rs.119.46 crore, which the focus products group achieved growth of 20 per cent. The domestic market contrast media products sales at Rs.10.06 crore registered growth of 12.9 per cent.

The overall formulations exports was marginally higher at Rs.123.79 crore. The exports of formulations to RoW markets declined by 3.1 per cent to Rs.87.43 crore Depreciation of local currencies against US Dollar in some markets has impacted the orders. However, the outlook in this business remains positive. The company received US FDA approval for Glipizide extended release tablets, 2.5 mg, 5 mg and 10 mg. It hopes to commence commercial supplies in Q1 next year. Its exports of formulations to Russia-CIS markets improved by 12.2 per cent to Rs.18.36 crore. Other formulations exports stood at Rs.18 crore. Its API sales declined by 47.2 per cent to Rs.15.14 crore.

The company has undertaken an expansion plan in domestic formulations business and thus plans to make sizable additions to the field strength as well as launch new products to strengthen existing therapy area. Though hiring has commenced, the plan will be operational from April 2017 onwards. Hence due to the investments there could be some impact on the Q4 results.

For the nine months period ended December 2016, its net sales increased only by 3.1 per cent to Rs.869 crore from Rs.843 crore in the same period of last year. Its net profit also improved only by 1.6 per cent to Rs.130.91 crore from Rs.128.67 crore.