Jubilant Organosys, a Rs 3500 crore plus largest custom research and manufacturing services company, has improved its working during the third quarter ended December 2009 and earned a consolidated net profit of s 101 crore as against a net loss of Rs 87.57 crore in the corresponding period of last year. Its net sales increased by 5.7 per cent to Rs 961.48 crore from Rs 909.64. Its pharmaceutical sales increased by 13.1 per cent to Rs 859.57 crore from Rs 760.11 crore. However, its sales of agri & performance polymers declined by 31.2 per cent.

Pharmaceutical and Life Sciences Product & Services (PLSPS) division contributed 89.28 per cent to its total net sales as against 83.5 per cent in the last period. In line with the continued strategy of enhancing Jubilant's focus as a pharma and life sciences company, the board has in principle approved the demerger of its agri and performance polymer business into a separate company for pursuing the growth prospects of both the businesses independently and efficiently. The company is now planning to raised fresh capital by way of equity/equity linked instruments upto Rs 1,000 crore.

Shyam Bhartia, chairman and managing director, said, “Jubilant Organosys remains firmly focused on achieving superior results from PLSPS business and it has built a strong operating position within its defined verticals in this space. The proposed demerger of agri and performance polymer business into a separate company will enable both Jubilant Organoosys as well as the new entity to focus on their respective core business. This initiative will enable each business to independently pursue and efficiently realise its operating objective.

For the nine months ended December 2009, Jubilant recorded a net profit of Rs 284.30 crore as against a net loss of Rs 137.53 crore in the similar period of last year. The earnings per share worked out to Rs 19.27 as against negative Rs 9.34 in the last period. Its consolidated net sales during the 9 months improved by 4.2 per cent to Rs 2791 crore from Rs 2676.74 crore. Its PLSPS division's sales moved up 10.7 per cent to Rs 2468 crore from Rs 2229 crore. This worked out to 89.3 per cent of its total sales in the first nine months. International sales formed 64 per cent of the company's total revenue and grew by 11.9 per cent to Rs 1788 crore from Rs 1597 crore. Growth mainly came from China where revenue grew by 23 per cent to Rs 272.9 crore and North America where revenue grew by 14.3 per cent to Rs 986.6 crore.

The company said that the EBITDA guidance of Rs 875 to 900 crore could be impacted to the extent of 5 per cent on account of change of execution profile of certain contracts signed and due to fluctuation in foreign currency.