Hyderabad: Jubilant Life Sciences Ltd on Tuesday posted a 22% rise in net profit for the quarter ended June on the back of improved performance of speciality pharmaceuticals and reduced expenses.
Net profit rose to Rs.162 crore in the April-June period compared to Rs.132 crore in the year-ago quarter.
Revenues declined 2% to Rs.1,420 crore, the company said.
While net profit was above analyst estimates, net sales came in below expectations. A Bloomberg poll of four analysts estimated the net profit at Rs.123.4 crore, while three analysts estimated the net sales at Rs.1,515 crore.
Jubilant’s operating expenses declined 6% to Rs.1,123 crore, and the company said it had achieved net debt reduction of Rs.247 crore in the first quarter. The company has a net debt of Rs.3,943 crore as on 30 June.
The pharmaceuticals division that contributes about 53% or Rs.752 crore of revenue, grew 7%, led by speciality pharmaceuticals.
Revenue from generics was flat during the quarter, with rest-of-the-world (ROW) business offsetting decline in US formulation business, the company said.
The company said it has added new clients for the supply of sterile injectables. It added that it has a contract manufacturing order book of $534 million.
The life science ingredient division that contributes about 44% or Rs.618 crore of revenue, declined 14% due to lower input prices from lower crude prices, resulting in decrease in prices of finished products and focus on some profitable markets, the company said.
Drug discovery solutions revenue doubled to Rs. 50 crore, contributing 3% to the overall mix of the company.
“Revenue and profitability growth in pharmaceuticals segment is expected to be led by new product launches in generics with robust growth in ROW business, expected launch of Ruby-fill and strong pipeline in radio-pharmaceuticals and ramp-up of operations in sterile injectables with new customer acquisitions and strong order book,” the company said in a statement outlining its performance in the coming quarters.
“In life science ingredients segment, focus is on generating operating cash by strategic initiatives of retrofitting plants for better capacity utilization, new product introductions and improved margins through cost optimization and better product mix,” the statement added.
Jubilant said it aims to reduce debt further through operating cash flow.
Jubilant has filed 70 abbreviated new drug applications (ANDAs) for oral solids, of which 44 ANDAs have been approved and 26 ANDAs are pending approval. The company said it plans to file 10 ANDAs in FY17.
In injectables space, the company has filed two products and received approvals for them.
Shares of Jubilant rose 3.61% to close at Rs.341.90 on BSE, while the benchmark Sensex declined 0.35% to end at 28,085.16 points.
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