Jubilant Pharmova announced an 86.4 percent year-over-year (YoY) fall in net profit at Rs 6.4 crore compared to Rs 47.1 crore reported in Q1FY23, sending its stock down 3% on July 19.
Aside from its revenue figures, the company also recorded a fall in operating margins and EBITDA (profits before interest, taxes, depreciation, and amortisation).
The stock was trading at Rs 385 a share at 3:00 p.m. on the NSE, down Rs 13.10 or 3.29 percent.
Consolidated revenue for the quarter increased 9.3 percent YoY to Rs 1,587 crore from Rs 1,451.7 crore in Q1FY23, according to the figures for the just-completed April to June quarter. However, compared to the Rs 1,678 crore reported in Q1FY23, the income decreased by 5.73 percent sequentially.
EBITDA fell by 11.9% YoY to Rs 192.5 crore for the first quarter of FY24 from Rs 169.6 crore reported for the first quarter of FY23.
Operating profit margins (OPM) dropped from 13.3 percent in the April to June quarter of the previous fiscal to 10.7 percent in the quarter under review, a decrease of 260 basis points.
Pharmaceuticals are produced, contract research and development services are provided, and unique innovative medications are developed by Jubilant Pharmova
Given that the pharmaceutical industry as a whole has been booming, the fall in profitability appears to be company-specific rather than industry-specific.