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Jubilant Life Sciences jumps over 12% in two sessions

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Capital Market
Last Updated : Aug 10 2016 | 3:13 PM IST

Jubilant Life Sciences rose 8.37% to Rs 370.50 at 15:00 IST on BSE, extending yesterday's 3.61% rise triggered by good Q1 June 2016 results.

Meanwhile, the BSE Sensex was down 274.99 points, or 0.98%, to 27,810.17.

On BSE, so far 5.93 lakh shares were traded in the counter, compared with average daily volume of 67,295 shares in the past one quarter. The stock hit a high of Rs 380.80 and a low of Rs 353.50 so far during the day. The stock hit a record high of Rs 455 on 7 December 2015. The stock hit a 52-week low of Rs 261 on 8 September 2015. The stock had outperformed the market over the past 30 days till 9 August 2016, rising 8.30% compared with 1.66% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 9.73% as against Sensex's 9.72% rise.

The mid-cap company has equity capital of Rs 15.93 crore. Face value per share is Re 1.

Jubilant Life Sciences' consolidated net profit rose 22.49% to Rs 161.60 crore on 1.72% decline in net sales to Rs 1400.97 crore in Q1 June 2016 over Q1 June 2015.

The result was announced at the fag end of the trading session yesterday, 9 August 2016. The stock settled 3.61% higher at Rs 341.90 yesterday, 9 August 2016. The stock has risen 12.27% in two sessions from Rs 330 on Monday, 8 August 2016.

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Jubilant Life Sciences' consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 13% to Rs 372 crore in Q1 June 2016 over Q1 June 2015. EBITDA margins were reported at 26.2% in Q1 June 2016 compared with 22.7% in Q1 June 2015.

The company said it received payment of $2 million with contingent payment totalling up to $180 million for out-licensing of Novel BET Inhibitors in drug discovery solutions.

The company's chairman, Shyam S Bhartia and co-chairman & managing director, Hari S Bhartia, said that the company started the year ending March 2017 on a positive note delivering strong performance in pharmaceuticals segment which contributed about 70% of the company's operating profit. The company has built a robust long term sustainable business model with the growth engine of pharmaceuticals and drug discovery solutions segments. The company will continue to deliver better performance going forward given the robust product pipeline in place.

The company said it in the year ending March 2017 (FY 2017) it is confident of maintaining the momentum going forward led by key initiatives in its key segments. Revenue and profitability growth in pharmaceuticals segment is expected to be led by new product launches in generics with robust growth in rest of the world (ROW) business, expected launch of ruby-fill and strong pipeline in radiopharmaceuticals and ramp-up of operations in sterile injectables with new customer acquisitions and strong order book. In life science ingredients segment, focus is on generating operating cash by strategic initiatives of retrofitting plants for better capacity utilization with new product introductions and improved margins by cost optimization and better product mix. The company said it will continue to reduce debt through operating cash flow and focus will be on improving key financial ratios. The company said it has achieved net debt reduction of Rs 247 crore in Q1 June 2017 and Rs 368 crore in the year ended March 2016.

Jubilant Life Sciences is an integrated global pharmaceutical and life sciences company engaged in manufacture and supply of active pharmaceutical ingredients (APIs), solid dosage formulations, radiopharmaceuticals, allergy therapy products and life science ingredients. It also provides services in contract manufacturing of sterile injectables and drug discovery solutions. The company's strength lies in its unique offerings of pharmaceuticals and life sciences products and services across the value chain.

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First Published: Aug 10 2016 | 2:55 PM IST

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