J B Chemicals Up 12%, Hits Fresh 52-Week High On Strong December Quarter

Shares of the Mumbai-based drug maker - J B Chemicals & Pharmaceuticals - rose as much as 12.46 per cent to hit fresh 52-week high of Rs 1,212.80 on the BSE a day after it announced December quarter earnings. JB Chemicals' annual net profit in quarter ended December 2020 jumped 132 per cent to Rs 154 crore from Rs 66 crore during the same quarter last year. Its revenues advanced 28 per cent to Rs 548 crore. The company had reported strong earnings in the December quarter on the back of higher operating profit margins. (Track JB Chemicals stock price here)

JB Chemicals' earnings before interest, taxes, depreciation and amortization (EBITDA) or operating profit climbed 90 per cent to Rs 171 crore and operating profit margin improved by over 1,000 basis points or 10 per cent to 31.2 per cent.

"Overall, the business continued to show encouraging momentum and registered a very healthy growth rate in Q3. India business continues to witness a positive trend in the chronic segment and we are among the fastest growing companies in IPM," Nikhil Chopra, CEO of JB Chemicals said in a statement.

"Domestic formulations maintained secular out-performance compared to IPM growth rates, driven by strength in chronic segments and expanding prescriber coverage," J B Chemicals said in a press release.

"Going forward, while our immediate focus will be to drive productivity enhancement opportunities within the India business along with a strong focus on cost optimization, over the medium to long term, we plan to scale up investments in R&D and other organizational enhancement initiatives to build a more forward-looking progressive portfolio and drive value for all our stakeholders," Mr Chopra added.

As of 11:01 am, J B Chemicals shares were trading 9 per cent higher at Rs 1,176, outperforming the Sensex which was up 0.3 per cent.