JB Chemicals & Pharmaceuticals Ltd.'s consolidated net profit jumped 16% in the second quarter of the current financial year, meeting analysts' estimates.
The company posted a profit of Rs 175 crore in the July–September period, as compared to Rs 151 crore in the year-ago period, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had estimated a net profit of Rs 172 crore.
JB Chemicals Q2 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 13% to Rs 1,001 crore versus Rs 882 crore (Bloomberg estimate: Rs 1,002 crore).
Ebitda up 11% to Rs 270 crore vs Rs 244 crore (Estimate: Rs 277 crore).
Ebitda margin narrows to 27% vs 27.6% Estimate: 27.6%).
Net profit up 16% to Rs 175 crore vs Rs 151 crore (Estimate: Rs 172 crore).
JB Chemical's revenue exceeded Rs 1,000 crore for the second consecutive quarter:
Domestic formulations revenue reached Rs 588 crore, a 22% growth of 22%. Excluding ophthalmology, domestic business growth was 12%.
International revenue grew 3% to Rs 413 crore, driven by a strong recovery in international formulations, though the contract development and manufacturing organisation division remained muted due to seasonal factors but is expected to perform well in the second half.
Gross margin stable at 66.2%.
Excluding the ophthalmology business, gross margin improved over 150 basis points YoY.
Gross margins benefited from cost optimisation, favourable product mix, and price growth, while overheads, including employee costs, were controlled to support operating margins.
Elevated freight costs continued to affect the international business.
Depreciation was consistent at Rs 42 crore, and finance costs fell to Rs 2 crore from Rs 10 crore due to reduced gross debt, which stood at Rs 82 crore as of Sept. 30, 2024.
Net profit increased 16% to Rs 175 crore.
Domestic Business
Domestic business grew 22% to Rs 588 crore, contributing 59% of the first-half revenue versus 55% in the year-ago period.
JB Pharma outperformed the Indian pharmaceutical market with an 11% YoY growth versus IPM's 7.6%.
International Business
International revenue grew 3% to Rs 413 crore, with international formulations rising 14% to Rs 300 crore.
The South African and US markets showed double-digit growth, and Russia and branded generics exports saw high single-digit growth.
CDMO business performance was muted in the first half due to material availability challenges, delaying sales to the third quarter. Strong third and fourth-quarter results are expected, with a healthy order book.
Active pharmaceutical ingredient revenue was Rs 19 crore.
Shares of JB Chemicals closed 1.5% higher at Rs 1,880.70 apiece on the NSE, compared to a 1.12% advance in the benchmark Nifty 50.
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