Jubilant Trims Losses In Q4, EBITDA Under Pressure
Suparna / 08 May 2013
In the March 2013 quarter, Jubilant Life Sciences managed to reduce the losses it saw in the previous year same quarter, with all its segments performing well.
Jubilant Life Sciences has reported a net loss of Rs 24 crore in Q4FY13 against a loss of Rs 57 crore seen a year ago. However, the company reported a topline growth of 18% to touch Rs 1388 crore. Its profitability was impacted due to higher input costs and lower-than-estimated topline growth.
During the quarter, the company’s pharmaceuticals segment has reported a total revenue of Rs 702 crore, which is up 13% on a year-on-year basis. This segment comprises APIs, Generics, Speciality Pharma, CMO, DDDS and Healthcare, and contributes 50% to its topline. The EBITDA margins of this segment stood at 24.9% compared to 29.7% in the corresponding period.
Growth has remained strong during the year. In the Generics space, revenues from new launches were strong. The Specialty Pharma segment also gained on this account. The company has a total of 620 filings for formulations, with 167 of these approved in various regions. This includes 58 ANDAs in the US and 41 dossier filings in Europe. Jubilant also has an API pipeline of 235 filings across regions.
Its other segment, Life Science Ingredients includes Proprietary Products and Exclusive Synthesis (PPES), Nutrition Ingredients and Life Science Chemicals. In the March 2013 quarter, the income from this segment stood at Rs 690 crore, up by 24% YoY. The EBITDA margins of this segment were at 13.8% against 8.8% a year ago. The expansion in margins was due to the due to better capacity utilisation from the newly set-up plants. The company has also increased prices of its nutrition product Niacinamide by 10%, which also helped it put up a good show.
On the costs side, Jubilant has seen its finance cost remaining flat at Rs 59 crore in the quarter. Tax expenses increased by 22% and the effective tax rate was 44%, which was higher compared to that of 24% a year ago.
Post the results announcement, the company has said that the growth momentum is expected to continue. In the pharmaceuticals segment, it is expecting to launch new products in various geographies, which will be a key driver. In life sciences, it is planning to expand its geographical reach, which will boost revenues. Robust capacity utilisation in Nutrition Ingredients and Crop Science intermediates will also support the company’s growth.
Jubilant seems to be well on the recovery path. Those with a long-term horizon may look to invest in this company.
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