J B Chemicals and Pharmaceuticals' net profit declined sharply by 77.4 per cent to Rs.4.31 crore during the first quarter ended June 2012 from Rs.19.05 crore in the similar period of last year on account of forex loss and sales of Russia & CIS OTC business. The figures are not strictly comparable as the company sold its OTC business in Russia and CIS on July 14, 2011. Its EBDITA also declined by 14.5 per cent to Rs.31.64 crore from Rs.37 crore . Its net sales improved by 4.2 per cent to Rs.184.85 crore from Rs.177.44 crore.

The company is fully focused on the domestic formulations business. For the quarter ended June 2012, the growth was lower than expected. While the newer products have shown reasonable growth, the older matured seasonal products have shown poor performance. Domestic business will continue to be the main drier for the coming years.

The exports to Rest of the World markets achieved impressive growth over the corresponding quarter in the previous year and this business is expected to maintain good momentum through the year. The company's focus on the US market, contract manufacturing and the generic businesses has shown good results. The prescription products sales in Russia-CIS were lower. Russia-CIS OTC business that the company sold last year was very profitable for the company.