Jubilant Pharmova (530019) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw 9% YoY revenue growth, 50% YoY EBITDA increase, and a significant reduction in net debt/EBITDA from 2.5x to 1.7x sequentially.

• Consolidated revenue from operations for Q1 FY25 was ₹17,204 million, up from ₹15,665 million in Q1 FY24, reflecting year-over-year growth.

• Net profit for the quarter was ₹4,818 million, a significant turnaround from a net loss of ₹618 million in the previous quarter, driven by a major one-time gain from the SOFIE Biosciences stake sale.

• Growth was led by Radiopharma, Allergy Immunotherapy, and CDMO Sterile Injectables, while Generics focused on profitability and CRDMO faced biotech headwinds.

• Strategic investments included a $50M plan to expand the PET radiopharmacy network and closure of the Sofie transaction, generating multifold returns.

Financial highlights

• Q1 FY25 revenue: ₹1,732 Cr (+9% YoY); EBITDA: ₹266 Cr (+50% YoY); EBITDA margin: 15.2% (+410 bps YoY).

• Normalised PAT: ₹69 Cr (up from ₹6 Cr YoY); reported PAT: ₹482 Cr (includes exceptional income).

• Net debt reduced to ₹1,869 Cr (from ₹2,509 Cr in Mar 2024) after voluntary prepayment of $75M debt.

• Exceptional items contributed a net gain of ₹3,959 million, primarily from the SOFIE stake sale.

• Basic EPS for the quarter was ₹30.44, compared to ₹0.40 in Q1 FY24.

Outlook and guidance

• Radiopharma to drive growth with new product launches and PET network expansion; commercial production on new Spokane line expected FY26.

• Generics expected to reach EBITDA breakeven within FY25; focus on profitable products and cost optimization.

• CRDMO segment anticipates revenue from two large pharma clients in H2 FY25; medium-term outlook remains positive despite biotech headwinds.

• Proceeds from the SOFIE sale will be used to reduce leverage and fund capex and other corporate purposes.

• The company plans to continue sales and marketing in the US market by outsourcing manufacturing after closing the Salisbury facility.