Jubilant Organosys, one of the largest custom research and manufacturing services (CRAMS) company, suffered heavy setback during the the first quarter ended June 2008 on account of unrealised exchange loss. The company's consolidated net profit declined sharply to Rs 12.76 crore from Rs 142.86 crore in the corresponding period of last year.

The company has shown exceptional item of unrealised exchange loss of Rs 107.59 crore on restatement of foreign currency borrowings including FCCBs compared to unrealised gain of Rs 87.88 crore in the similar period of last year. The profit before exceptional items, interest and taxation increased by 59.5 per cent to Rs 139.58 crore from Rs 87.53 crore despite significant rise in staff cost. Its staff cost went up by 80.9 per cent to Rs 125.56 crore from Rs 69.41 crore in the last period. Its interest cost increased by 63.2 per cent to Rs 13.77 crore from Rs 8.44 crore.

The company's consolidated net sales increased by 53.1 per cent to Rs 826.60 crore in the first quarter ended June 2008 from Rs 539.95 crore in the same period of last year mainly due to acquisition in Canada based company. Jubliant's subsidiary acquired 100 per cent stake in Draxis Health Inc in USA, along with its subsidiaries. This Canada based company is engaged in CRAMS in the area of sterile and non-sterile products and also focuses on discovering, developing and manufacturing diagnostic imaging and therapeutic radiopharmaceutical products.

Its pharmaceutical sales increased to Rs 522 crore from Rs 303 crore and that of industrial & performance products went up to Rs 304.87 crore from Rs 237.37 crore in the corresponding quarter of last year. Pharma sales contributed 63.2 per cent in total sales.

Commenting on the performance, Shyam Bhartia, chairman and managing director, said, "We are extremely pleased with our operating performance in first quarter. Growth was across segments of business as we benefited from strong demand for outsourcing in CRAMS and DDDS. Also, our industrial and performance products business delivered much enhanced numbers on the back of very good demand for our products resulting in increased volumes. We have delivered consistently on a year-on-year basis on the pharma and life sciences outsourcing platform by creating a stable and consistent model for growth. Our outlook for the future is extremely positive and is guided by the strong demand of our products and services offerings."