Jubilant Organosy’s quarterly profits zoom to Rs 126 cr; sees revenues to grow by 15% for FY 2010

India’s leading contract manufacturing and research services (CRAMS) provider Jubilant Organosys has reported a nearly ten-fold jump in its consolidated net profit for the quarter ended June 31, 2009.

Jubilant Organosys’ net jumped nearly ten fold to Rs 125.82 crore due to mark-to-market gains over the same period last year. Jubilant Organosys had a net profit of Rs 12.76 crore in the same period ended June 2008, Jubilant Organosys said in a press release.

The pharmaceutical sales increased by 18.1 per cent to Rs 617.18 crore from Rs 522.65 crore in the corresponding period of last year. However, its sales of industrial & performance products declined by 8 per cent to Rs 280.16 crore from Rs 304.67 crore.

Jubilant’s contract manufacturing operations (CMO) and speciality pharmaceuticals improved by 59.4% to Rs. 131.0 crore and 69.5% to Rs. 59.8 crore respectively.

International sales grew by 17.0% with revenues at Rs. 566.9 crore in Q1 FY2010 against Rs. 484.6 crore last year. The regulated markets that form a focus area for the Company showed growth of 36.1% to Rs. 421.7 crore. The contribution of North America was at Rs. 315.6 crore (up 38.9%) and Europe at Rs. 102.6 crore (up 28.9%).

Industrial and Performance Products (IPP) revenues went down to Rs. 279.2 crore from Rs.303.9 crore in Q1 FY2009 on account of lower realization and product rationalization.

Higher interest burden of Rs 40.69 crore in the quarter ended June 2009 as compared to Rs 13.77 crore in the last period and higher employees cost of Rs 183.22 crore as against Rs 125.56 crore, put pressure on profit before tax & foreign exchange adjustments, which declined to Rs 97.83 crore from Rs 125.81 crore. However, it has successfully reduced its power cost, depreciation charges and selling, general & administrative expenses during the quarter under review.

Jubilant maintains the guidance of revenue growth of 15% for FY 2010 driven by the expected growth in Pharma and Life Sciences Product and Services (PLSPS) business. PLPS grew 18.1% to Rs. 617.2 crore during the period.
Jubilant also hopes the margins in PLSPS to be better and hence maintain its guidance of 27% EBITDA margin in PLSPS business with overall EBITDA margin of 20% for FY 2010. The margin growth would be derived from Proprietary products, CMO of Sterile Injectables, Speciality Pharmaceuticals and Drug Discovery business.“

“We are happy to begin FY 2010 with healthy growth in the PLSPS business. The growth is led by CRAMS through new customer approvals in CMO, new partnerships in Drug Discovery & Development Services and new product launch in Radio Pharmaceuticals segment,” Shyam S Bhartia, Chairman & Managing Director and Hari S Bhartia, Co-Chairman & Managing Director,Jubilant Organosys Ltd, stated in the release.

Jubilant Organosys Ltd is the leading custom research and manufacturing services (CRAMS) and one of the emerging drug discovery and development services companies out of India. Jubilant has a presence across the pharmaceutical value chain for products and services such as proprietary products, exclusive synthesis, active pharmaceutical ingredients, contract manufacturing of sterile injectables (liquids and lyophilized) products, non-steriles (ointments, creams and liquid) and radiopharmaceuticals, drug discovery services, medicinal chemistry services, clinical research services, generic dosage forms and Health Care. Jubilant Organosys has manufacturing facilities at ten locations worldwide. Jubilant caters to more than 150 customers across more than 50 countries around the world.

India’s leading contract manufacturing and research services (CRAMS) provider Jubilant Organosys has reported a nearly ten-fold jump in its consolidated net profit for the quarter ended June 31, 2009.

Jubilant Organosys’ net jumped nearly ten fold to Rs 125.82 crore due to mark-to-market gains over the same period last year. Jubilant Organosys had a net profit of Rs 12.76 crore in the same period ended June 2008, Jubilant Organosys said in a press release.

The pharmaceutical sales increased by 18.1 per cent to Rs 617.18 crore from Rs 522.65 crore in the corresponding period of last year. However, its sales of industrial & performance products declined by 8 per cent to Rs 280.16 crore from Rs 304.67 crore.

Jubilant’s contract manufacturing operations (CMO) and speciality pharmaceuticals improved by 59.4% to Rs. 131.0 crore and 69.5% to Rs. 59.8 crore respectively.

International sales grew by 17.0% with revenues at Rs. 566.9 crore in Q1 FY2010 against Rs. 484.6 crore last year. The regulated markets that form a focus area for the Company showed growth of 36.1% to Rs. 421.7 crore. The contribution of North America was at Rs. 315.6 crore (up 38.9%) and Europe at Rs. 102.6 crore (up 28.9%)

Industrial and Performance Products (IPP) revenues went down to Rs. 279.2 crore from Rs.303.9 crore in Q1 FY2009 on account of lower realization and product rationalization.

Higher interest burden of Rs 40.69 crore in the quarter ended June 2009 as compared to Rs 13.77 crore in the last period and higher employees cost of Rs 183.22 crore as against Rs 125.56 crore, put pressure on profit before tax & foreign exchange adjustments, which declined to Rs 97.83 crore from Rs 125.81 crore. However, it has successfully reduced its power cost, depreciation charges and selling, general & administrative expenses during the quarter under review.

Jubilant maintains the guidance of revenue growth of 15% for FY 2010 driven by the expected growth in Pharma and Life Sciences Product and Services (PLSPS) business. PLPS grew 18.1% to Rs. 617.2 crore during the period.
Jubilant also hopes the margins in PLSPS to be better and hence maintain its guidance of 27% EBITDA margin in PLSPS business with overall EBITDA margin of 20% for FY 2010. The margin growth would be derived from Proprietary products, CMO of Sterile Injectables, Speciality Pharmaceuticals and Drug Discovery business.“

“We are happy to begin FY 2010 with healthy growth in the PLSPS business. The growth is led by CRAMS through new customer approvals in CMO, new partnerships in Drug Discovery & Development Services and new product launch in Radio Pharmaceuticals segment,” Shyam S Bhartia, Chairman & Managing Director and Hari S Bhartia, Co-Chairman & Managing Director,Jubilant Organosys Ltd, stated in the release.

Jubilant Organosys Ltd is the leading custom research and manufacturing services (CRAMS) and one of the emerging drug discovery and development services companies out of India. Jubilant has a presence across the pharmaceutical value chain for products and services such as proprietary products, exclusive synthesis, active pharmaceutical ingredients, contract manufacturing of sterile injectables (liquids and lyophilized) products, non-steriles (ointments, creams and liquid) and radiopharmaceuticals, drug discovery services, medicinal chemistry services, clinical research services, generic dosage forms and Health Care. Jubilant Organosys has manufacturing facilities at ten locations worldwide. Jubilant caters to more than 150 customers across more than 50 countries around the world.