Jubilant Pharmova net profit declines 3 percent to Rs 143 crore in Q2
New Delhi: Pharmaceuticals firm Jubilant Pharmova Ltd on Friday reported a 3 per cent decline in consolidated net profit from continuing operations at Rs 142.64 crore crore for the second quarter ended September 30, 2021. The company had posted a consolidated net profit of Rs 146.9 crore in the same period last fiscal, Jubilant Pharmova Ltd (JPL) said in a regulatory filing.
Consolidated total revenue from operations stood at Rs 1,657.45 crore in the second quarter as against Rs 1,591.35 crore in the year-ago period, it added.
During the quarter, the pharmaceuticals segment clocked revenue of Rs 1,543.20 crore as compared to Rs 1,516.46 crore in the comparable period a year ago.
Contract research and development services (CRDS) vertical posted revenue of Rs 116.02 crore as against Rs 80.20 crore earlier, the filing added.
JPL Chairman Shyam S Bhartia and Co-Chairman and Managing Director Hari S Bhartia in a joint statement said the topline growth during the quarter was driven by steady revenues in the pharmaceuticals segment and robust growth in the CRDS vertical.
"In the pharmaceuticals segment, while radiopharma, allergy and CMO businesses reported growth on a Y-o-Y basis, the API (active pharmaceutical ingredients) business' performance was lower on a higher base last year and generics business witnessed headwinds due to temporary pricing pressure in the US market," they said.
The generics business was also affected during the quarter by an import alert at the Roorkee plant and impact of the industry-wide impurity issue in certain 'sartan products' (a class of medicines used to treat high blood pressure and heart failure) that led to lower sales and some product withdrawals, they added.
On the outlook, JPL said its pharmaceuticals vertical continues to build a long-term pipeline of radiopharmaceuticals and it is executing a turnaround plan of radiopharmacies. The medium-long term outlook remains robust.
"Allergy business is well placed to grow strongly with healthy margins over the medium term. We expect the CDMO (contract development and manufacturing) segment to witness near term correction as COVID related product demand will shift as the pandemic subsides," it added.
As far as generics is concerned, the company said the performance in the current year is expected to be "impacted due to the import alert, pricing pressure in the US market and new industry wide impurity issue in sartans".
The CRDS business will continue to grow especially with commissioning of the new facility at Greater Noida and the company continues to evaluate further capex plans in this business given the strong demand climate, it added.
JPL said it expects to incur capital expenditure of Rs 700-800 crore in FY22, including expansion at Spokane site in the US by 50 per cent by end of CY 24, enhancement of CRDS capabilities and capacities, and further expansion of the Greater Noida facility.
Read also: Jubilant Pharma to remain integral to group post reorganisation: SnP
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