JB Chemicals & Pharmaceuticals (506943) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly sales exceeding INR 1,000 crores for the first time, with Q1 FY25 consolidated revenue at INR 1,004 crores, up 12% year-on-year.

• Domestic business led growth, contributing 60% of total revenue and showing 22% year-on-year growth, driven by strong brand performance and chronic therapies.

• International business remained stable at INR 409 crores, with growth in Russia and RoW offsetting a decline in South Africa.

• Standalone and consolidated unaudited financial results for the quarter ended June 30, 2024, were approved by the Board on August 8, 2024.

• Statutory auditors conducted a limited review and found no material misstatements in both standalone and consolidated results.

Financial highlights

• Gross profit margin improved to 66.2%, up 80 basis points year-on-year.

• Operating EBITDA (excluding ESOP cost) rose 20% year-on-year to INR 292 crores, with margin at 29%.

• Profit after tax increased 25% year-on-year to INR 177 crores.

• Gross debt reduced by INR 249 crores during the quarter to INR 108 crores, with net cash position at INR 313 crores.

• Consolidated net profit after tax for Q1 FY25 was ₹17,683 lakhs, compared to ₹14,232 lakhs in Q1 FY24.

Outlook and guidance

• Maintains operating EBITDA margin guidance of 26%-28%, expecting to be at the higher end.

• Domestic business expected to grow 12%-14% for the year, outpacing the Indian pharma market.

• CDMO business anticipated to deliver double-digit growth in H2 FY25 as order book strengthens.

• Management continues to monitor geopolitical risks, especially regarding Russia and Ukraine, but expects full recoverability of receivables and assets.