JB Chemicals and Pharmaceuticals on November 7 reported a 35 percent growth in consolidated net profit at Rs 150.5 crore for the July-September quarter of the financial year 2023-2024. The pharma company had reported a net profit of Rs 111.1 crore in the year-ago period.
Revenue for the quarter came in at Rs 881.7 crore, 8.9 percent higher than Rs 809.4 crore in the same quarter of the previous fiscal, the company said in an exchange filing.
The Mumbai-based company reported earnings before interest, taxes, depreciation and amortisation (EBITDA) at Rs 243.5 crore, up from Rs 184.6 in the year-ago period. The EBITDA margin was at 27.6 percent, up from 22.8 percent in the year-ago quarter.
“During Q2, the business delivered a healthy blend of domestic and international business growth, with expansion in domestic business led by our chronic segment and acquired portfolio. Our transformed go-to-market framework is driving gains in market share and improvement in our rankings in IPM. Our acquired portfolio has not only helped us increase our chronic segment presence and market rankings, but it is also beginning to positively impact our operating margins,” said CEO Nikhil Chopra in a press statement.
Domestic formulations business continued its momentum recording a YoYgrowthof11 percent in Q2 FY24 and 14 percent in H1FY24. International business registered YoY growth of 7 percent inQ2 FY24 and 9 percent inH1FY24. CDMO business recorded revenue of Rs 115 crores.
Chronic segment performed well in Q2FY24 and H1FY24 while acute portfolio remained subdued due to weak demand. JB Pharma continues to be the fastest growing company amongst Top25 in IPM (IQVIAMAT Sept’23 data).
International business recorded revenue of Rs 401 crores inQ2 FY24 and Rs 808 crores inH1FY24. International formulations business registered YoY growth of 7 percent in Q2 FY24 to Rs 263 crore.
Net capex addition for H1FY24 was Rs 93 crore mainly on account of expansion of the lozenges manufacturing facility in Daman The estimated capex for FY24 is Rs 145 crore.
The company’s gross debt reduced to Rs 427 crore as on 30thSep’23 against Rs 548 crore as on 31stMar’23.
JB Pharma plans to double its business from lozenges, in the next 3-4 years CEO, Nikhil Chopra had said in an interview with Moneycontrol earlier.
Manufacturing of lozenges, which are flavored tablet or medicated candy that is intended to dissolve slowly in the mouth is the primary CDMO (Contract Development and Manufacturing Organization) business of the company. The company partners with top international players like Reckitt, Proctor and Gamble, J&J and Inova to manufacture household names from Vicks and Strepsils to Difflam.
JB Pharma's ambitions extend beyond cough and cold remedies, aiming to diversify into melatonin combination lozenges for sleep disorders, anti-inflammatory lozenges, and immunity-boosting lozenges. Their expansion also spans across international territories, with partnerships slated for countries including Brazil, Mexico, South Africa, and European nations. The company's impressive production capacity reaches 2 billion units in the lozenges segment.
Chopra emphasized that JB Pharma’s plan is “making big brands bigger – by not going wide and rather digging deep”. This entails a three-pronged approach involving lifecycle management, incremental innovation, and launching new products within existing flagship brands like Cilacar, Nicardia, Rantac, and Sporolac.
JB Pharma's focus on India has elevated its contribution to the business from 45 percent to 52 percent in 2023. Its vision is to further enhance the combined influence of its Indian business and CDMO operations to 75-80 percent.
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