JB Pharma Q2 Results: Net profit up 35% to Rs. 150.5 crore

JB Chemicals and Pharmaceuticals reported a 35% increase in consolidated net profit, reaching Rs 150.5 crore.

JB Chemicals and Pharmaceuticals reported a 35% increase in consolidated net profit, reaching Rs 150.5 crore for the July-September quarter of the fiscal year 2023-2024. This is compared to a net profit of Rs 111.1 crore in the same period the previous year. The company’s revenue for the quarter was Rs 881.7 crore, marking an 8.9% increase from the previous fiscal year’s Rs 809.4 crore.

JB Chemicals and Pharmaceuticals, based in Mumbai, also reported its earnings before interest, taxes, depreciation, and amortization (EBITDA) at Rs 243.5 crore, up from Rs 184.6 in the same period the previous year. The EBITDA margin rose to 27.6% from 22.8% in the previous year’s quarter.

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JB Chemicals and Pharmaceuticals experienced good growth in both India and abroad, especially in the long-term healthcare segment and with products they acquired. In the part of the company that sells medicines in India, they saw an 11% growth compared to the same time last year, and for the first half of the year, their growth was even higher at 14%. Their international business also did well, with a 7% increase compared to last year’s Q2 and a 9% increase for the first half of the year

“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.

The company’s CDMO (Contract Development and Manufacturing Organization) business generated revenues of Rs 115 crores. The chronic segment performed well in Q2 FY24 and H1 FY24, while the acute portfolio was somewhat subdued due to weak demand. JB Pharma continued to be one of the fastest-growing companies among the Top 25 in the Indian Pharmaceutical Market (IPM).

B Pharma’s international business recorded revenues of Rs 401 crores in Q2 FY24 and Rs 808 crores in H1 FY24. International formulations business had a YoY growth of 7% in Q2 FY24, reaching Rs 263 crores. The company’s gross debt reduced to Rs 427 crore as of September 30, 2023, down from Rs 548 crore as of March 31, 2023. JB Pharma aims to double its business in the next 3-4 years. They have plans to expand their lozenge manufacturing facility in Daman.

The company’s approach is centered on “making big brands bigger” through lifecycle management, incremental innovation, and launching new products within existing flagship brands. JB Pharma’s focus on India has increased its contribution to the business, from 45% to 52% in 2023. Their vision is to further enhance the combined influence of their Indian business and CDMO operations to 75-80%.