News

Published: November 9, 2023
Updated: November 9, 2023

JB Pharma Q2 FY2024 Report: Impressive 35% Surge in Net Profit

Revitalizing Growth and Expansion

JB Chemicals and Pharmaceuticals, on November 7, unveiled their remarkable financial performance in the July-September quarter of the fiscal year 2023-2024. The pharmaceutical giant showcased a substantial 35% surge in consolidated net profit, reaching Rs 150.5 crore. This striking achievement stands in sharp contrast to the net profit of Rs 111.1 crore reported in the same quarter of the previous fiscal year.

Rising Revenue

During this quarter, JB Pharma demonstrated impressive financial growth, reporting a total income of Rs 881.7 crore. This number represents an 8.9% increase compared to the Rs 809.4 crore earned in the corresponding quarter of the previous fiscal year.

Expanding EBITDA

The company also highlighted its earnings before interest, taxes, depreciation, and amortization (EBITDA) at Rs 243.5 crore, a significant improvement from the Rs 184.6 crore reported in the year-ago period. Notably, the EBITDA margin soared to 27.6%, marking a substantial increase from the 22.8% recorded in the same quarter of the previous year.

CEO's Insights

JB Pharma's CEO, Nikhil Chopra, shared insights into their successful quarter, stating that the business achieved a healthy balance between domestic and international growth. The expansion in the domestic segment, driven by the chronic sector and the acquired portfolio, contributed to gains in market share and rankings in IPM. Additionally, the acquired portfolio positively impacted operating margins.

Business Segments

Domestic Formulations: JB Pharma maintained its momentum, recording an 11% YoY growth in Q2 FY24 and a 14% growth in H1 FY24.

International Business: The international segment registered a 7% YoY growth in Q2 FY24 and a 9% growth in H1 FY24.

CDMO Business: The Contract Development and Manufacturing Organization (CDMO) business recorded revenues of Rs 115 crores.

Focus on Chronic Segment

The chronic segment delivered impressive performance in both Q2 FY24 and H1 FY24. In contrast, the acute portfolio faced challenges due to weak demand. JB Pharma continues to be the fastest-growing company among the top 25 in IPM (IQVIAMAT Sept'23 data).

International Reach

JB Pharma's international business demonstrated robust growth, reporting revenues of Rs 401 crores in Q2 FY24 and Rs 808 crores in H1 FY24. The international formulations business achieved a YoY growth of 7% in Q2 FY24, reaching Rs 263 crores.

Investment and Expansion

In terms of investment, JB Pharma added Rs 93 crore in net capex during H1 FY24, primarily for the expansion of the lozenges manufacturing facility in Daman. The estimated capex for FY24 stands at Rs 145 crore. Additionally, the company managed to reduce its gross debt from Rs 548 crore as of March 31, 2023, to Rs 427 crore as of September 30, 2023.

Future Plans

JB Pharma is committed to doubling its business in lozenges within the next 3-4 years. The company's ambitious expansion encompasses partnerships with top international players and a diversification into various lozenge types, including sleep disorder, anti-inflammatory, and immunity-boosting lozenges. Their global reach extends to countries such as Brazil, Mexico, South Africa, and European nations. JB Pharma's production capacity in the lozenges segment stands at an impressive 2 billion units.

Strategic Approach

Chopra emphasized that JB Pharma's strategy is centered around "making big brands bigger." This involves a three-pronged approach, including lifecycle management, incremental innovation, and launching new products within existing flagship brands like Cilacar, Nicardia, Rantac, and Sporolac.

Focusing on India

JB Pharma's focus on the Indian market has become increasingly significant, contributing 52% to the business in 2023, up from 45%. The company envisions further enhancing the combined influence of its Indian business and CDMO operations to 75-80%.JB Pharma's Q2 FY2024 report showcases impressive growth, both in terms of profit and strategic expansion. With strong domestic and international performance, a focus on the chronic segment, and ambitious plans for the future, JB Pharma is on a path of sustained success.