By: IPP Bureau
Last updated : November 07, 2024 11:06 am
JB’s domestic business continued to out-perform the market with all our major brands posting strong growth
JB Chemicals & Pharmaceuticals Ltd (JB Pharma), one of the fastest growing pharmaceutical companies in India, announced its financial results for the quarter ended 30th September, 2024.
JB Pharma recorded revenue of Rs. 1,001 crores in the second quarter of FY25 registering growth of 13% from Rs. 882 crores in Q2 FY24. Operating EBITDA (Earnings before Interest Depreciation and Taxes) improved by 13% to INR 285 crores. Profit after Taxes registered strong growth of 16% to Rs.175 crores vs Rs. 151 crores in Q2 FY24.
Commenting on the financial results, Nikhil Chopra, CEO and Wholetime Director, JB Pharma mentioned, “We maintained a healthy pace of growth in Q2, achieving Rs. 1,000 crore revenue for the quarter. EBITDA margins at 28% are at the higher end of our guidance range, given a favourable product mix and cost optimization initiatives. JB’s domestic business continued to out-perform the market with all our major brands posting strong growth. We have steadily driven strong volume growth for our large brands, including the acquired portfolios.
“On the international front, our formulations business performed well in Q2 and CDMO division growth will pick up in H2 as we come out of a seasonally muted Q2. JB has consistently delivered a strong revenue and margin growth. We are confident of maintaining this positive traction towards our operating and strategic goals for both this year and beyond. As we chart our future, we remain focused on making the organisation progressive and future ready.”
Financial Performance – H1 FY25 vs H1 FY24
For the first half of the financial year 2024-25, JB Pharma recorded revenue of Rs. 2005 crores as compared to Rs. 1778 crores, registering growth of 13%. Operating EBITDA (Earnings Before Interest Depreciation and Taxes) increased by 17% to Rs. 576 crores as compared to Rs. 494 crores. Profit after Tax registered growth of 20% to Rs. 351 crores vs Rs. 293 crores in H1 FY24.
JB Balance sheet: Cash flows remain strong
o Operating cash flows in H1 FY25 was INR 378 crores vs Rs. 421 crores in H1 FY24
o Cash tax increased to INR 97 crores in H1 FY25 vs 63 crores in H1 FY24
o Higher levels of inventory on account of anticipated increases in API costs and ophthalmology inventory
o Gross Debt reduced to Rs. 82 crores as on 30th Sep’24 vs Rs. 357 crores as on 31st Mar’24
o Cash and Cash equivalents (including investments in mutual funds) were at Rs. 420 crores as on 30th Sep’24
o Net capex addition for H1 FY25 was Rs. 49 crores vs Rs. 93 crores for H1 FY24
Domestic Business – Q2 FY 25
o Domestic business continued its momentum and registered YoY growth of 22% to Rs. 588 crores
o Excluding ophthalmology portfolio, domestic business grew 12%
o Domestic business now constitutes 59% of overall turnover in H1 FY25 as compared to 55% of overall revenue in H1 FY24
o As per IQVIA MAT Sep’24 data, JB Pharma continues to remain one of the fastest growing companies in the industry
o JB Pharma outperformed IPM and clocked YoY growth of 11% vs IPM growth of 7.6%
o Our major brands viz. Cilacar, Cilacar-T, Rantac, Nicardia, Metrogyl and Sporlac gained ranks as per IQVIA MAT Sep’24 data
o As per IQVIA MAT Sep’24 data, Razel franchise recorded growth of 28% to INR 93 crores
International Business Q2 FY 25
o International business revenue grew at 3% to Rs. 413 crores vs Rs.401 crores
o International formulations business grew by 14% to Rs. 300 crores
o South Africa and the US business registered double-digit growth
o Russia and Branded Generics exports market recorded high single digit growth
o CDMO business remained muted for H1 FY25. Expected to recover in H2 FY25
o CDMO sales got deferred to Q3 FY25 due to material availability challenges, which further impacted Q2 FY25 performance
o As a result, CDMO is expected to report strong numbers for Q3 FY25. Annualised order forecast continues to remain healthy despite muted H1
o Robust order book for Q3 FY25 and Q4 FY25
o API business clocked revenue of Rs. 19 crores