Jubilant Organosys achieved impressive performance during the third quarter ended December 2005 and its consolidated net profit went up by 36 per cent to Rs 36.60 crore from Rs 26.90 crore in the corresponding period of last year. The companies consolidated net sales also increased by 46.5 per cent to Rs 423.40 crore from Rs 289 crore. The net sales of pharmaceutical and life science chemicals (PLSC) segment went up by 67.5 per cent to Rs 191.30 crore from Rs 114.20 crore. The international business improved by 55 per cent to Rs 173.20 crore.

Meanwhile, the Board of Directors recommended stock split of one equity share of face value of Rs 5 into 5 equity shares of Rs 1 each subject to the approval of shareholders and the stock exchange.

The PLSC business continued to be the key growth driver in the third quarter. Besides high growth in existing CRAMS business, this growth was supported by consolidation of revenues of overseas subsidiaries acquired during the year. PLSC business contributed 44 per cent of the net sales of the company, which shot up from 38 per cent in third quarter of 2005-06. The improvement in profits pushed its earning per share to Rs 13.52 from Rs 11.42 in the last period.

Shyam S Bhartia, chairman and managing director, said, "We are pleased to report an encouraging performance in the quarter. Our focus business of pharma and life science chemicals, continued to record high growth, CRAMS witnessed a significant growth due to increased demand for our products and favourable price scenario in the global markets. Our CRAMS business is expected to continue high growth trajectory given the growing customer confidence in our capabilities. The drug discovery services business got an impetus with Jubilant initiating the collaborative drug discovery work with global pharmaceutical company. We expect our service business to gain momentum during 2006."

For the nine months period ended December 2005, Jubilant recorded a growth in consolidated net sales of 27.4 per cent to Rs 108.16 crore from Rs 84.88 crore in the similar period of last year. However, the net profit for the nine months period declined by 4 per cent to Rs 81.5 crore from Rs 84.90 crore basically due to higher cost of raw materials and staff cost. The PLSC business continued to be the growth driver recording 35 per cent increase in revenues during the first nine months to Rs 464.50 crore

Bhartia added, "We have continued to implement our growth plans, making an acquisition of a clinical research organisation in the US and executing capacity expansions in our API and CRAMS. With improvement in input material cost, CRAMS realisations getting better, and of drug discovery work with innovator companies, we expect FY 2006 performance to be in line with our growth strategy."

Jubilant is making substantial investment in pharma and life sciences business. It has enhanced the capacity of CRAMS and API business in addition to acquisition of US generic pharma company. The company entered into a five-year agreement with Eli Lilly and Company for providing a range of collaborative drug discovery services to Lilly.

The stand alone net sales increased to Rs 379.30 crore during the third quarter ended December 2005 from Rs 272 crore in the corresponding period of last year and for nine months, the net sales increased by 26.4 per cent to Rs 1016.70 crore from Rs 804.1 core in the corresponding period. Jubilant's stand alone net profit for the third quarter also moved up to Rs 40.90 crore from Rs 25.20 crore and that for the nine months period of 2005-06 increased by 18.2 per cent to Rs 91.40 crore from Rs 77.3 crore.