J B Chemicals & Pharmaceuticals, which sold its Russia-CIS OTC products business and transferred worldwide rights to three trademarks to Johnson & Johnson on July 2011, has posted net profit of Rs.619.95 crore during the second quarter ended September 2011 as its one time exceptional income amounted to Rs.760.59 crore. After selling its businesses, its net sales reached at Rs.160.77 crore as against Rs.233.14 crore in the corresponding period of last year and its other operating income climbed to Rs.32.88 crore from Rs.4.33 crore. Other operating income includes dividend received of Rs.24.97 crore from its Russian subsidiary. The figures are not comparable on account of business bifurcation. Its EBDITA improved to Rs.58.72 crore from Rs.57.60 crore.
After selling its Russian businesses, the company paid special interim dividend of Rs.40 per shares on September 9, 2011.
For the first half ended September 2011, J B Chemicals' net sales worked out to Rs.338.22 crore as compared to Rs.392.01 crore. Its net profit went up to Rs.639 crore from Rs.65.30 crore on account of exceptional income of Rs.760.59 crore. Other operating income reached at Rs.38 crore from Rs.8.67 crore mainly on account of dividend of Rs.24.97 crore received from its Russian subsidiary. Further its other income increased to Rs.17.80 crore due to income from investments. During the first half the company voluntarily dissolved its wholly owned subsidiary viz., Unique Pharmaceutical Laboratories S.R.L., Romania.
The domestic formulations business and rest of the world exports registered moderate growth during the quarter. In domestic formulations business, however, the focus brands and new products have registered impressive growth. It is in the process of chalking out new business plans for additional growth in domestic formulations business. These plans may be implemented during the course of the current financial year. It is planning to launch 4 new products in second half of this year to leverage the strong brand equity.
The recently launched Femident Divisin (catering to gynecology and dental segments) in domestic formulations business has shown good promise and the company plans to consolidate the growth by increasing the field force and the product basket. J B Chemical is working on several partnership models for growing its business in US. Further, it is also in the process of restructuring the prescription products business in Russia-CIS to make the business more profitable.