Jubilant Life Sciences, a Rs.5,100 crore plus pharma major from Uttar Pradesh, has posted lower EBDITA as well as profit before exceptional items and tax during the third quarter ended December 2013. Its profit before exceptional items and taxation declined sharply by 32.8 per cent to Rs.96.70 crore from Rs.143.91 crore in the corresponding period of last year. Its EBDITA also declined by 8.2 per cent to Rs.254.59 crore from Rs.277.38 crore. However, its net profit after exceptional items and taxation improved to Rs.143.43 crore from Rs.26.69 crore in the same period of last year.

The company has shown exceptional items of Rs.10.51 crore (income) during the quarter under review as compared to Rs.69.04 crore (expenditure). This represents exchange difference on long-term foreign currency monetary liabilities which has been used for the purpose other than acquiring fixed assets. Further, it shown taxation income of Rs.48.82 crore as against tax paid of Rs.69.04 crore on account of revaluation of certain tax provisions pertaining to earlier years (including deferred taxes).

The company's consolidated net sales increased by 10.3 per cent to Rs.1,428 crore from Rs.1,295 crore. International revenue contributed 76 per cent to Rs.1,093 crore. Its sales in North America grew by 5 per cent to Rs.566 crore and that from Europe and Japan increased by 22 per cent to Rs.324 crore. Domestic revenue improved by 2 per cent to Rs.350 crore. Rest of the World revenue improved by 29 per cent to Rs.203 crore.

The sales of pharmaceutical business increased marginally by 1.5 per cent to Rs.675.36 crore from Rs.665.23 crore and that of life sciences ingredients moved up 19.7 per cent to Rs.768.35 crore from Rs.641.79 crore in the similar corresponding quarter of last year. Pharmaceutical segment contributed around 47 per cent and life sciences ingredients 53 per cent to the total sales. The profit before tax and interest of pharmaceutical segment declined sharply by 30.3 per cent to Rs.104.93 crore. However, the same of life sciences ingredients increased by 24.5 per cent to Rs.90.67 crore.

Shyam S Bhartia, chairman & MD and Hari S Bhartia, co-chairman & MD, said, “The performance of Q3 FY14 reflects the strengths of our diversified portfolio of businesses. We are strengthening our quality systems to ensure flawless compliance and deliver better value to our stakeholders. We expect to perform better going forward due to new product launches under solid dosage formulations, scale up in speciality pharmaceuticals and higher volume in Vitamins and Acetyl businesses.”

For the nine months ended December 2013, Jubilant net sales increased by 11.7 per cent to Rs.4,170 crore from Rs.3,733 crore in the corresponding period of last year. Its net profit, however, declined sharply by 94.4 per cent to Rs.10.23 crore from Rs.183.70 crore due to higher exceptional expenditure of Rs.259.88 crore as against Rs.114.30 crore . The tax provision declined to Rs.34.41 crore from Rs.109.51 crore. The interest cost is impacting its profitability significantly and went up by 12.8 per cent to Rs.245.19 crore from Rs.217.81 crore in the same period of last year.

Its pharmaceutical sales increased by 3.2 per cent during the nine months ended December 2013 to Rs.1,956 crore and that of life science ingredients moved up by 22 per cent to Rs.2,218 crore. International sales increased by 15 per cent to Rs.3,162 crore and domestic sales by 6 per cent to Rs.1,074 crore.