Jubilant Organosys, one of the largest custom research and manufacturing services company, has received minor setback during the year ended March 2009 and its net profit declined by 4.8 per cent to Rs 283.18 crore from Rs 297.44 crore in the previous year. However, its net sales went up sharply by 41.3 per cent to Rs 3518 crore from Rs 2489 crore.
The company management declared equity dividend of 150 per cent for the year 2008-09. This will result in a dividend payout of Rs 25.9 crore. Its basic earning per share worked out Rs 19.22 against Rs 20.67.
The sales of Pharma and Life Sciences (PLS) business increased by 51.9 per cent to Rs 2324 crore from Rs 1530 crore in the previous year. During the year 2008-09, Jubilant has strengthened its position in CRAMS and revenue from CRAMS increased to RS 1963 crore from Rs 1307 crore. This comprised Rs 490 crore in revenues from the contract manufacturing operations as compared to RS 205 crore in last year. Its revenues from international market increased to Rs 2177 crore from RS 1394 crore and that from industrial and performance products increased to Rs 1194 crore from Rs 959 crore.
The company incurred an exceptional loss of Rs 47.93 crore as compared to Rs 12.89 crore in the previous year. This comprises of a gain of Rs 59.1 crore on buyback of FCCBs of US$ 60.9 million; unrealized loss of Rs 101.3 crore due to mark-to-market of forward covers taken on future exports, profit of Rs 5.3 crore on sales of fixed assets and intangible write-off Rs 11 crore in Q3 of 2008-09.
Commenting on the performance, Shyam Bhartia, chairman & managing director and Hari Bhartia, co-chairman and managing director, said, "We are happy to conclude FY 2009 with a record top line growth, which is fuelled by the robust performance of our pharma and life sciences business. Despite the global economic slowdown, the company has reported very robust organic growth due to its strategic thrust on moving up the value chain in its pharma business. The earnings from this segment will be strengthened further with positive outcomes from the drug discovery and development services. Our focus on driving synergies, capacity utilization and business collaboration with global pharma companies will enable us to build future growth momentum."
The company expects a 15 per cent growth in sales in the current year with strong growth in pharma business. The growth will be led by expected new product launches in the radiopharma segment, new customer approvals in the custom manufacturing business for sterile and non sterile products and robust revenue streams from the DDDS. The capex for FY2010 is planned at Rs 150 crore, which will be mainly in CRAMS.