Jubilant Life Sciences, formerly known as Jubilant Organosys, has
recorded consolidated net profit growth of 42.3 per cent during the
second quarter ended September 2010 to Rs.82.09
crore from Rs.57.68 crore in the
corresponding period of last year. The significant growth in profits is
mainly due to lower exceptional expenditure, interest cost and taxation
provision during the period under review. Its EBDITA declined by 14.6
per cent to Rs.163.70 crore from Rs.191.66 crore. The company provided
exceptional expenditure of Rs.0.65 crore
as against Rs.42.77 crore in the last
period.

The company's consolidated net sales increased by 5.8 per
cent to Rs.987.58 crore from Rs.933.11 crore. Its international business
contributed 62 per cent to top line. Pharma and Life Science Product and
Services (PLSPS) revenues improved by 11 per cent to Rs.850 crore, contributing 86 per cent to the
total revenues. Its API business posted growth of 11 per cent and dosage
forms 50 per cent. The Life Science Products' sales touched at Rs.657 crore and that of Life Sciences Services
amounted to Rs.193 crore. The products
business saw a good volume growth of 13 per cent and revenues visibility
in the services business is encouraging though volatility persists due
to slow regulatory approvals of the customers.

Shyam S Bhartia,
chairman & managing director and Hari S Bharhtia, co-chairman and
managing director, said, "Long term contracts on hand along with the
newly signed contracts and deals in pipeline confirm buoyancy trend
towards outsourcing in CRAMS space. The reported volume growth and the
capacity utilization in CRAMS continue to increase, confirming
outsourcing trend is intact. In CMO Services business although the
visibility continues to improve, volatility persists due to some slow
regulatory approvals of customer products."

The company signed a
long term contract in CRAMS business with a leading US Life Sciences
company. The multi-year contract is valued at US$ 51 million. This is
'take or pay' contract with agreed quantities. Further, the company is
in discussions to increase the contract value to more than 2.5 times.

The
company also signed another contract in CRAMS business with expected
value of US$ 33 million for the initial term of four and a half years
and the contract is effective from August 2010. At the end of the
initial term, Jubilant has the first right of refusal for continuing the
contract.

For the first half ended September 2010, Jubilant's
consolidated net sales increased by 7.6 per cent to Rs 1,969 crore, but
its net profit declined by 21.1 per cent to Rs.144.82
crore from Rs.183.50 crore. The company
provided Rs.21.45 crore as exceptional
expenditure as against gain of Rs.6.27
crore in the last period. Due to lower net profit, its earnings per
share declined to Rs.9.12 from Rs.12.44 in the last period. Its PLSPS revenues
touched to Rs.1,663 crore and contributed
84 per cent to its total revenues.