JB Chemicals and Pharmaceuticals jumps 6% after strong Q4 numbers

JB Chemicals and Pharmaceuticals Ltd jumped 6 percent in afternoon trade on May 25, a day after the pharmaceutical company reported a 3.3 percent year-on-year (YoY) increase in net profit at Rs 87.6 crore for the fourth quarter that ended on March 31, 2023.

In the corresponding quarter last year, the company posted a net profit of Rs 85 crore, according to a regulatory filing.

During the March quarter, total revenue stood at Rs 762.3 crore, up 22 percent from Rs 624.6 crore in the corresponding period of the previous fiscal year. The revenue growth was driven by strong performance and double-digit growth across all segments, with domestic formulations recording a growth of 29 percent for the quarter and 38 percent for FY23.

Its international business also exhibited a 16 percent growth in Q4 and 22 percent during FY23. New products contributed 5.3 percent to domestic sales for the quarter.

At the operating level, EBITDA jumped 31 percent to Rs 163.6 crore in the fourth quarter of this fiscal over Rs 125 crore in the corresponding period of last year. The EBITDA margin stood at 21.5 percent in the reporting quarter against 20 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The pharma player has also declared a final dividend and stock split. In a meeting held on May 24, JB Chemicals’ board of directors recommended a final dividend of Rs 9.25 per equity share having a face value of Rs 2 each for fiscal year FY23 and a sub-division or split of existing equity shares of face value of Rs 2 each to equity shares of face value of Re 1 each.

JB Chemicals EPS has increased to Rs. 11.33 in March 2023 from Rs 10.98 in March 2022

On annual basis, the company recorded revenues of Rs 3,149 crore compared to Rs 2,424 crore, registering a growth of 30 percent. Net profit was Rs 410 crore compared to Rs 386 crore in the last fiscal, recording growth of 6 percent. Gross margins were at 62.9% for FY23 down from 65.2% in FY22, primarily impacted by cost inflation and higher Azmarda sales during exclusivity.

The company’s gross debt came in at Rs 548 crore. Cash and cash equivalents (including investments in mutual funds) were at Rs 282 crore as on year ended 2023.

Mr Nikhil CEO & Whole Time Director of JB commented on the performance stating, “JB continued its growth journey in the fourth quarter, thereby ending FY23 with strong performance across business segments. Our market beating performance in India is pivoted around big brands becoming bigger, and significant demand acceleration in the acquired portfolio. Further, Azmarda entered IQVIA’s Top 300 brands list and other acquired business in probiotics and paediatric segment have witnessed rank and market share gain.”

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In terms of future outlook he also stated that they expect to continue this growth in the long term by expanding the pipeline for international business. While they remain cautious about the inflationary environment, their efforts will focus on execution, with productivity and cost optimization as drivers, to deliver improved operating margins.

At 3:24 pm, JB Chemicals and Pharmaceuticals was trading with gains of 6.50 percent at Rs 2044.90 on the National Stock Exchange.

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