Jubilant Org plans capex of Rs 750 cr for FY09

Jubilant Organosys has come out with Q4FY08 numbers. Its consolidated net sales went up by 49% at Rs 689 crore versus Rs 463.30 crore. Operating profit jumped at Rs 125 crore versus Rs 79.7 crore. Net profit was down 9% at Rs 58.2 crore versus Rs 63.8 crore.

Key takeaways from Jubilant Organosys concall

• International Revenues increased by 107.4% at Rs 442.9 crore, this growth due to consolidation of Hollister acquisition & volume growth in CRAMs business.
• Revenue from North America and EU contributed 41.8% and 25%, respectively
• CRAMs business contributed 58.1% to revenues
• Guidance for FY09 (Without accounting for proposed Draxis acquisition)
  Revenue growth of 35%
  Operating profit to improve substantially due to increase in volumes and margin expansion
• Expect robust growth in CRAMs  business
• With the consolidation of Hollister acquisition  As a result Pharma and Life Science business is expected to grow 72%
• Higher EBIDTA  margins due to higher contribution from pharma and Life sciences business
• Planned capex of Rs 750 crore for FY09 (Rs 320 crore for CRAMs business, Rs 70 crore for APIs biz, Rs 125 crore for R&D in Noida etc)
• Company has long term contract with Johnson and Jhonson
• Current cash at Rs 525 crore and debt of Rs 165 crore
• Company to buy 100% stake in Canadian drug producer Draxis Health Inc. through its wholly-owned subsidiary for USD 255 million (Rs 1,020 crore)
• FY08
  Revenues up 35.7% at Rs 24.9 billion
  Outsourcing CRAMs business grown on capacity expansion

For further details, listen to concall....