JB Pharma stock surges to 52-week high on stellar Q1 earnings show

JB Pharma posted double digit growth in Q1 net profit, revenue and EBITDA.

Shares of JB Chemicals & Pharmaceuticals surged nearly 3 percent to hit a 52-week high of Rs 1,999 on August 9 as investors cheered the drugmaker's strong all round earnings show for the April-June quarter. The company posted double-digit growth across all three key parameters of revenue, profit and profitability.

The drugmaker's revenue crossed the Rs 1000 crore-mark for the first time in Q1 of FY25 as it grew 12 percent on year to Rs 1,004 crore. Growth in the topline was driven by strong domestic formulations sales which rose 22 percent on year to Rs 595 crore and also offset flattish revenue from the international business.

The company stated that its international business revenue remained muted in the quarter gone by due to seasonality and strategic choices made during the period.

"Strong performance in the domestic business has continued, with each of the big brand franchises witnessing market-beating growth. We expect the international business including CDMO business to pick-up in the second half of the financial year," said Nikhil Chopra, CEO and Whole-time Director, JB Pharma.

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Regardless, the company still managed to improve its operational performance, with EBITDA growing 20 percent to Rs 292 crore, up from Rs 243 a year ago. EBITDA margin also expanded 200 basis points on year to 29 percent in Q1. Cost optimisation efforts, favourable product mix and price growth positively impacted JB Pharma's operating margins.

The strong operational as well as revenue performance also lifted JB Pharma's bottomline, with net profit rising 25 percent to Rs 177 crore, up from Rs 142 crore in the same quarter last fiscal.

Going ahead, the company forecasted operating margins to stay in the range of 26 -28 percent backed by a sustained focus on cost optimisation initiatives. Aside from that, JB Pharma stated aiming for its India and CDMO business to constitute around 75 - 80 percent of total revenue in the mid-term.

Moreover, the company remains positive over its India business and expects it to deliver market beating growth as it remains focused on increasing the share of chronic therapies to 60 percent in the mid to long-term.

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