J B Chemicals & Pharmaceuticals has posted strong growth in bottom line during the fourth quarter ended March 2013 with higher sales and gain in exchange fluctuations. The company's standalone net profit jumped by 123 per cent to Rs. 19.75 crore from Rs. 8.87 crore in the corresponding period of last year. Its EBDITA worked out to Rs. 28.99 crore as against a loss of Rs. 1.08 crore. The company reported Forex gain of Rs. 0.89 crore as against a loss of Rs. 12.81 crore. Its net sales jumped up by 33.6 per cent to Rs. 197.73 crore from Rs. 148 crore.

The Board of Directors has recommended equity dividend of 150 per cent for the year ended March 2013.

The financial results for the year ended March 2013 are strictly not comparable with the results of the previous year due to sale of Russia-CIS OTC business during the previous year. However, the quarter results are comparable.

For the full year, J B Chemicals' standalone net sales increased by 25 per cent to Rs. 794.46 crore from Rs. 635.77 crore. However, its net profit declined to Rs. 84.94 crore from Rs. 642.70 crore as it registered a gain of Rs. 761 crore from sale of Russian business in the previous year.

The domestic formulations business improved by 10 per cent to Rs. 305 crore and the ROW exports improved by 36 per cent to Rs. 221 crore. In view of manufacturing infrastructure of international standards coupled with strong R&D and regulatory back up, the strategy in this business is to focus on contract manufacturing, niche branded generics and lozenges. As US market continues to show encouraging growth, the company has identified several potential products for this market and has been making necessary investments to grow this business further.

The Russia-CIS Rx business registered growth of 82 per cent with sales at Rs. 100 crore. Post sale of Russia-CIS OTC business in the previous year, the company has been making investments afresh in creating new infrastructure to exploit the potential market of Russia-CIS countries. Till the business reaches a size-able scale, the investments will continue.

Its API business increased by 56 per cent to Rs. 62 crore. The contract manufacturing business with Cilag GmbH International continues in ordinary course. As regards the notices of claim received from Cilag GmbH International under the transaction document relating to sale of Russia-CIS OTC business, the company and Cilag are in discussion to resolve the differences.