Jubilant Life Sciences reported 10% decline in consolidated net profit to Rs 224 crore on 5% rise in total revenue from operations to Rs 2,375 crore in Q2 FY21 over Q2 FY20.
On the segmental front, pharmaceuticals revenue was at Rs 1,516 crore (up 4% YoY), life science ingredients revenue was at Rs 784 crore (up 4% YoY) and drug discovery & development solutions revenue was at Rs 75 crore (up 23% YoY) in the second quarter.
Total expenditure during the quarter increased by 5% year-on-year (YoY) to Rs 1,889 crore during the quarter.
Reported EBITDA rose 3% to Rs 493 crore in Q2 September 2020 from Rs 481 crore in Q2 September 2019. Reported EBITDA margin was at 20.8% as on 30 September 2020 as against 21.2% as on 30 September 2019.
Profit before tax in Q2 FY21 stood at Rs 314 crore, up by 7% from Rs 292 crore in Q2 FY20. Tax expense surged 109% to Rs 90 crore in the second quarter from Rs 43 crore in the same period last year.
Commenting on the Company's performance, Shyam S Bhartia, chairman and Hari S Bhartia, co-chairman & managing director, Jubilant Life Sciences said: "Q2 FY21 has witnessed a substantial improvement over the previous quarter despite continued adverse impact of the COVID-19 pandemic in at least the first half of Q2.
The company's performance in the LSI business has been better in EBITDA as well as in margins both year-on-year as well as quarter-on-quarter due to good demand and improved pricing of select products. We maintained business continuity in all the manufacturing sites. DDDS segment witnessed strong year-on-year growth in revenues led by healthy demand from customers.
Pharma business performance improved substantially quarter-on-quarter (QoQ) led by growth in CMO and Generics. Radiopharma continued to have a temporary negative impact due to COVID-19 related restrictions on hospital visitations. With the gradual opening of the US healthcare markets, demand conditions have started improving and Allergy business is already at Pre-COVID level during Q2 FY21. We continue to see new business opportunities in CDMO, Generics and Specialty Pharma segments.
With the strong demand recovery and new business sign-ups, we expect strong performance in our Pharma, LSI and DDDS businesses in the H2 FY21. During H1 FY21, the company reduced net debt on a constant currency basis by Rs 193 crore."
With respect to business outlook, the company said that it continues to see improvement in demand in most of its business segments be it Specialty Pharma, CMO, API or Specialty Intermediates. Given the strong demand recovery and new business sign-ups, the company believes that COVID-19 is not likely to have a material impact on our overall performance during FY21, provided the pandemic situation does not materially deteriorate going forward. Overall, it expects strong performance in our Pharma, LSI and DDDS business in the second half of FY21.
"For Pharmaceutical business, we expect Q3 and Q4 performance to further improve over Q2. For LSI business, we expect to achieve close to double digit growth in revenues and significant growth in EBIDTA with higher margins and a very healthy cash generation in FY21," it further said.
The scrip shed 0.16% to Rs 705.55. It traded in the range of 681.60 and 713.25 so far during the day.
Jubilant Life Sciences is an integrated global pharmaceutical and life sciences company engaged in pharmaceuticals, life science ingredients and drug discovery & development solutions businesses.
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