Jubilant Life Sciences announces quarter numbers, booked profit of Rs 117 crores

Jubilant Life Sciences (JLSC), an integrated global pharmaceuticals and life sciences company announced its nine month ending quarter results on Tuesday. 

On financial front, the net revenue from operations of JLSC reached to Rs 1379 crores in Q3FY16 compared to Rs 1445 crores in Q3FY15, a decrease of 4.57 per cent YoY. The EBITDA stands at Rs 310 crores this quarter compared to Rs 191 crores in Q3FY15, an increase of 62 per cent YoY. The EBITDA margin of company stands at 22.5 per cent this quarter compared to 13.2 per cent in Q3FY15. The increase in EBITDA is attributed to decrease in consumption of raw material by 16.56 per cent to Rs 485 crores compared to Rs 581 crores for the same period last year. The net profit stands at Rs 117 crores in Q3FY16 compared to a loss of Rs 11 crores in Q3FY15. 

The nine month ending net revenue from operations increased by 0.26 per cent and reached to Rs 4301 crores compared to Rs 4290 crores for the same period last year. The net profit for nine month period stands at Rs 361 crores compared to a loss of Rs 100 crores for the same period last year. 

This quarter income from operations of the pharmaceuticals segment and life science ingredients segment stands at Rs 728 crores contributing 53 per cent to the revenue and at Rs 652 crores, contributing 47 per cent to the revenue, respectively. Further this quarter there is a 12 per cent decline in life science ingredients due to lower input prices from declining crude prices resulting in lower prices of finished products. 

The company is expecting to continue the growth momentum going forward. Revenue growth in pharmaceuticals segment is expected to be driven by new product launches in Generics and Radiopharmaceuticals and increased capacity utilization in Sterile Injectables. Life Science Ingredients segment is expected to deliver higher growth and better margins led by strategic initiatives, underway to convert some of our existing product specific plants to multi-purpose plants in Specialty Intermediates; and improved operational efficiency and revenue growth in Nutritional Products, stated a company official.

Commenting on the company’s performance, Shyam S Bhartia, Chairman and Hari S Bhartia, Co-Chairman & Managing Director said: “We are happy to report another quarter of consistent performance with significant improvement in profitability in our business segments. We have been able to sustain the momentum generated in the last few quarters and major initiatives undertaken by the company have started yielding results. Our commitment to the highest level of quality and compliance has been ably demonstrated by the successful inspection of all our facilities by the USFDA during the year. This will hold us in good stead to grow our business in the future.”

On valuation front the trailing twelve month (TTM) P/E of company is 20.55 compared to industry P/E of 32.92. The stock of company is trading at Rs 355.25,  a decrease of 2.84 per cent from previous close due to heavy profit booking.