Jubilant Pharmova's consolidated net profit surged 82.4% to Rs 160.49 crore on 44.2% jump in net sales to Rs 1,613.45 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).
Consolidated profit before tax soared 359.82% to Rs 246.51 crore in Q1 FY22 over Q1 FY21. EBITDA grew 107.10% to Rs 379 crore in Q1 FY22 as against Rs 183 crore in Q1 FY21. EBITDA margin improved to 23.2% during the quarter as compared to 15.8% during Q1 June 2020. Profit margin stood at 9.8% in Q1 June 2021 over 3.1% in Q1 June 2020. The Q1 earnings was declared after market hours on Friday, 23 July 2021.
Finance costs stood at Rs 35 crore as compared to Rs 48 crore in Q1 FY21, registering a 27.08% fall. Average blended interest rate for Q1 FY22 stood at 4.64% as against 5.26% in Q1 FY21. Capital expenditure for the quarter was at Rs 106 crore.
Meanwhile, the board of Jubilant Pharmova (JPM) on Friday, 23 July 2021, approved the demerger of the Active Pharmaceutical Ingredients (API) undertaking of Jubilant Generics (JGL), a wholly-owned subsidiary of the company and vesting of the same with JPM, on a going concern basis, to be implemented through a scheme of arrangement between JGL and JPM and their respective shareholders.
The objectives of this business reorganization are: creation of a small molecule discovery and chemistry focused vertical present across value chain of CRO & CDMO of Innovative and Generic API. This will strengthen and sustain long-term growth, profitability, market share, customer service, risk management as it requires focused management attention, different skill sets and resources. Synergies between CRO & CDMO businesses can be realized more effectively in a holding/ subsidiary company structure as compared to fellow subsidiary structure. This would also help in supporting customers for their needs from early stage of research to commercialization of active ingredients, and will provide competitive edge to this business.
Commenting on company's Q1 performance, Shyam S Bhartia, the chairman and Hari S Bhartia, the co-chairman & managing director of Jubilant Pharmova, has said that: "During this quarter, in addition to Y-o-Y increase, we also reported sequential improvement in the Specialty Pharma segment with gradual recovery across radiopharmaceuticals, Radiopharmacy and Allergy business. In radiopharmaceuticals, we have enhanced efforts to promote existing products as well as expand our product pipeline with strategic partnerships. With a gradual recovery in nuclear medicine procedures, the turnaround plan of Radiopharmacy business is on track. CMO business continued to benefit from COVID-19 related deals."
"Contract Research and Development Services business witnessed strong Y-o-Y growth in revenues led by healthy demand from customers. We have doubled our chemistry research capacity and the facility is operational now. Despite COVID-19 related lockdowns, we have been able to ensure continuity in most of our manufacturing operations across all business segments while at the same time ensuring safety of our employees. I take this opportunity to thank all our employees who have worked tirelessly across all our plants and offices to ensure continuity in company's operations, while continuing to serve our global customers."
In its business outlook, Jubilant Pharmova said that it continues to build a long term pipeline of radiopharmaceuticals and are executing a turnaround plan of radiopharmacies. In CMO, the company has a strong visible order book and are expanding Spokane capacity by 50% that will come into commercial operations by end CY24. The capacity expansion is on track. JPM expect performance of Generics to be impacted to some extent due to the import alert.
Contract Research and Development Services (CRDS) will continue to grow especially with the commissioning of additional capacity. For Proprietary Novel Drugs, the company plans to take one drug candidate to Phase I clinical trials in H2 FY22. JPM expects to incur capex of Rs 700-800 crore in FY22 that includes expansion at Spokane site and of the CRDS capacity.
Consolidated effective tax rate (ETR) of Jubilant Pharmova for Q1 FY22 was 34.9%. The company's cash tax outflow is estimated to be at approximately 24% for the next three years. After exhaustion of the MAT credit, the company's effective tax rate is expected to come down to around 25% in three years' timeframe.
Jubilant Pharmova (erstwhile Jubilant Life Sciences) is engaged in pharmaceuticals, contract research and development services and proprietary novel drugs businesses.
Shares of Jubilant Pharmova skid 0.98% to Rs 690.10 on BSE. It traded in the range of Rs 683.55 and Rs 719.85 during the day.
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