JB Pharma share price rises more than 4% post Q3 results: Scales 52-week highs as net profit grows 26% year-on-year
- Stock Market today: J.B. Chemicals & Pharmaceuticals (JB Pharma) share price was trading with gains of more than 4% on Wednesday. The share price had risen more than 12% during morning trades to scale 52-week highs. During Q3, the company's' net profit grew at a strong pace of 26% y-o-y.
J.B. Chemicals & Pharmaceuticals Limited (JB Pharma) share price was trading with gains of more than 4% on Wednesday. the share price had gained more than 12% during the morning trades to scale 52 week highs post storing Q3 earnings performance reported by the company on Tuesday post market hours. The net profit for J. B Chemicals had registered a strong 26% y-o-y growth to ₹134 crores.
While JB Pharma (J.B Chemicals) recorded revenue of ₹845 crores in third quarter of FY24 registering growth of 7% from ₹793 crores in Q3 FY23.
However it was the strong improvement in operating performance that lifted the earnings. Operating EBITDA* (Earnings before Interest Depreciation and Taxes) for JB Pharma grew by 22% to ₹235 crores in Q3 FY24 as compared to ₹193 crores in Q3 FY23. The gross margins at 67.1% and operating margins 27.8% improved significantly from 62.3% and 22% respectively in the year ago quarter. Profit after Taxes registered strong growth of 26% to ₹134 crores in Q3 FY24 versus ₹106 crores in Q3 FY23.
Nikhil Chopra, CEO and Wholetime Director, JB Pharma (J.B. Chemicals and Pharmaceuticals) attributed the margin improvement to four factors. The Business mix improved with rise in Chronic portfolio contributions, however JB Pharma is also seeing rise in CDMO (Contract Development and manufacturing) revenues. Further the efficiency programs being undertaken by the company are yielding results. The company also has cut down on lower margin South African Business that is helping improvement in margins too.
JB Pharma domestic business revenue at 462 crores marked a YoY growth of 14%) in Q3 FY24.
Chronic business continued to perform well while the acute business witnessed recovery despite muted season said J.B. Chemicals.
New launches in acute and probiotic business of JB Pharma have seen strong performance. In the Probiotics, JB Pharma (J.B.Chemicals) brand Sporlac is Inching towards ₹100 crore mark.
Our order book for the CDMO business is looking good for forthcoming quarters, said Chopra.
As earnings for JB Pharma (J.B. Chemicals) saw a strong growth in Q3, it is confident of achieving 10% topline growth during FY24 with Ebitda growing 20% and operating margins expected to come at 27%. JB Pharma's Chopra expects that in two years time JB Pharma will be growing at 12-14%, with Chronic segment contributions at 52%. Ebitda margins for JB Pharma are expected to sustain 26-28% mark driving earnings growth.
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JB Pharma (J.B.Chemicals) also is progressing to grow its ophthalmology segment, post marketing agreement for Novartis brands completed in December.
The ophthalmology segment holds great promise as we expect this market to grow in mid-teens and consistently outperform IPM growth, said Chopra.
Analysts at BNP Paribas post Ophthalmic segment foray by JB Pharma had said that Novartis brands build a road to future growth.
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