JB Pharma records revenue growth of 30 percent to Rs 785 crores in Q1

JB recorded robust revenue growth at 30% despite a challenging operating environment, while the organic growth was pegged at around 20%. Domestic Formulations business continued its strong performance growing at 34% to INR 418 Crores. International business revenues grew by a healthy 28% to INR 366 crores. All the three businesses viz. Exports formulations, CMO and API business performed well in the quarter. Operating EBITDA grew by 16 % to INR 190 Crores while gross margins were at a healthy 62.7% v/s 64.2%. Non-cash ESOP cost as a percentage to reported EBITDA was at 10% as compared to 20% of reported EBITDA in Q4 FY22. Other expenses included the normalization of marketing expenses as compared to Q1 FY22, and increase in fuel, freight and logistics in the exports business on a YOY basis, whilst some softening was seen in international freight.

Domestic Business records highest ever sales in a quarter of INR 418 crore registering growth of 34%, while organic revenues from the domestic business also outpaced the industry growth. JB Pharma continues to remain the fastest growing company among the top 25 as per IQVIA MAT June '22 data and as per MAT June '22 data, JB Pharma ranked 23^rd as compared to 25^th in Q4 FY22. The acquired brands from Sanzyme performed well with Sporlac gaining market share during the quarter and good revenue traction achieved from the successful transition of the acquired brand Azmarda; good revenue traction achieved.

International business recorded robust revenue growth of 28% to INR 366 crores with exports formulations, CMO and API business recorded growth of 11%, 108% and 17% respectively. South Africa unit registered growth in both public & private markets riding on robust tender demand and new launches in the private market. Russia local sales remained steady with receivables looking positive from the region. The CMO revenue crossed INR 100 crores for the first time in a quarter due to strong surge on account of demand in lozenges and liquids from key partners. Overall, the order book continues to remain robust.