JUBILANT LIFESCIENCES

Jubilant Lifesciences posted a strong set of numbers. Its consolidated total revenue showed a degrowth of 2% (YoY) at Rs.1420 crore but lower operating costs and lower interest outgo helped the company end the quarter with a 22% rise in net profit at Rs.162 crore. In total revenue, Pharmaceuticals contributed 53% to the overall mix, LSI at 44%, Drug Discovery Solutions at 3%. Exports stood at Rs.1050 crore, contributing 74% to the overall mix. USA contributes 67% to major exports but it was down 6% while revenue from Europe and Japan rose 61%.

EBITDA was up 13% at Rs.372 crore and margins improved 349 bps to 26.2%. Finance cost has come down from 83 crore to Rs.91 crore. Its net debt stands at Rs.3,943 crore compared to Rs. 4,190 Crore in March’16, a reduction of Rs.247 crore in current Q1. NPM improved from 9.1% to 11.4%.

China has reduced Anti-Dumping Duty on its Pyridine to 17.6% from 24.6% and company is on track to add 2 pyridine derivatives in H2 FY17, while it has received 2 ANDA approvals in Q1 as well, which is seen quite positive.