Jubilant Jan-March net halves; outlook firm

Jubilant Jan-March net halves; outlook firm

Mumbai: Drugmaker Jubilant LifeSciences on Tuesday posted a 55% drop in March quarter consolidated profit but expects to post robust revenue growth and operating profits in FY12 on higher capacity utilisation and expansion into new geographies.

The firm posted a net profit of 61.72 crore in January-March compared with 140 crore a year ago while net sales fell by a tenth to 890 crore.

“The growth in service business is muted due to one-time revenue opportunity in previous year and slowdown in Clinical Research business," Hari Bhartia, co-chairman and managing director, said in a statement.

The firm has planned capex of 500 crore for FY12 to drive growth and its proposed expansion is likely to generate revenue of more than 1200 crore at full capacity utilisation.

It expects to launch 55 new products including solid dosage forms, API and proprietary products, it said, adding sales growth in Europe and Japan is likely to exceed 40% in FY12.

Jubilant in December had demerged its agri performance polymers business into a separate entity, Jubilant Industries to create a focused Life Science entity.

Its total March-end debt stands at 3880 crore, it said, while outstanding foreign currency convertible bonds worth $142 million together with accrued interest of $60 million due for repayment on 19 May.

The company expects to use part of its 1046 crore of cash balance invested in liquid funds and bank deposits for the repayment, it said.

Shares in the firm, valued at $601 million, ended down 5.5% at 159.5 in the Bombay Stock Exchange.