Jubilant Organosys Ltd will hive off its low-profit, non-core business to focus on drug research and manufacturing and related operations, the company, a leading player in the contract research and manufacturing services (Crams) business, announced today.
It also announced board approval for a name change to “Jubilant Life Sciences Ltd.” The board, which met today, also approved a proposal to raise up to Rs 500 crore through equity or equity-related instruments for capital expenditure. “The board has taken an enabling resolution to raise the capital, though there is no immediate requirement,” said R Shankaraiah, chief financial officer.
Jubilant registered a net profit of Rs 57.7 crore for the quarter ended September 30, as against a loss of Rs 62.7 crore during the same period in 2008. It revenues were near-stagnant, with the current quarter registering Rs 933 crore, 0.78 per cent lower than Rs 940.5 crore during the corresponding period last year. The company also posted foreign exchanges losses of Rs 42.8 crore, including Rs 27.8 crore on mark to market of unassigned forward contracts and interest rate swaps during the period. “We are confident of better margins and profitability on account of new contracts in sterile injectables and the drug discovery and development businesses,” said Hari S Bhartia, co-CMD.