Jubilant Pharmova Ltd, a pharmaceutical company, faced a challenging first quarter in the fiscal year 2024, as it reported an 86.4% year-on-year decline in its consolidated net profit. The company’s Q1 net profit plummeted to ₹6.4 crore, down from ₹47.1 crore in the same period last year. Consequently, the company’s shares witnessed a dip of over 2% in Wednesday’s trading session, with shares trading at ₹388.50.
Despite the significant decline in net profit, Jubilant Pharmova managed to achieve a 9.3% year-on-year increase in consolidated revenue for the quarter ended June 30 (Q1FY24). The company’s revenue rose to ₹1,587 crore from ₹1,451.7 crore in Q1FY23. Moreover, the consolidated income from operations also showed growth, rising 8.7% to ₹1,566.5 crore from ₹1,440.5 crore in the same quarter last year.
The quarter also witnessed an improvement in the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which increased by nearly 30% to ₹178 crore compared to ₹137 crore in Q1FY23. Consequently, EBITDA margins rose to 11.2% in Q1FY24, marking an improvement from 9.9% in the corresponding quarter of the previous year.
However, the total expenses for the quarter stood at ₹1,568.9 crore, reflecting an increase from ₹1,393.8 crore in Q1FY23 and ₹1,785.6 crore in Q4FY23.
On the technical front, Jubilant Pharmova shares experienced some positive traction before the Q1 results were announced, but following the earnings report, the stock faced weakness with increased volume activity. Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, observed a profit booking trend that might continue in the near term, leading to potential levels around 370 – 365.
The stock’s performance over the past year was mixed, with a 3.5% rise but underperforming its sector by 15.1%, according to trendlyne data. Jubilant Pharmova will need to navigate these challenging times and make strategic moves to regain stability and growth in the pharmaceutical market.
