Jubilant Pharmova on July 13 reported net profit of Rs 160 crore in Q1FY22, a year-on-year (YoY) jump of three and half fold compared to corresponding period's low base hit by COVID related disruption.
The net profit jump was led by gradual recovery in specialty radiopharmaceutical business hit by COVID-19, traction in contract manufacturing and generics segment performing well on COVID antiviral drug Remdesivir sales.
The company in Q1FY21 reported a net profit of Rs 35 crore. Revenues rose 41 percent YoY to Rs 1,635 crore in Q1FY22 versus Rs 1,156 crore in Q1FY21.
The earnings before interest, tax, depreciation and amortisation (EBITDA) margins stood at 23.2 percent in Q1FY22, reporting an increase of 7.4 percentage points.
The specialty pharma segment that constitutes 41 percent of company's total revenue grew 18 percent YoY to Rs 632 crore. The CDMO business that constitutes 31 percent or Rs 474 crore rose 70 percent and generic business and generics business rose 54 percent to Rs 362 crore.
“During this quarter, in addition to YoY increase, we also reported sequential improvement in the Specialty Pharma segment with gradual recovery across radiopharmaceuticals, Radiopharmacy and Allergy business," said Shyam S Bhartia, Chairman and Hari S Bhartia, Co-Chairman & Managing Director of Jubilant Pharmova in a joint statement.
"In radiopharmaceuticals, we have enhanced efforts to promote existing products as well as expand our product pipeline with strategic partnerships. With a gradual recovery in nuclear medicine procedures, the turnaround plan of the Radiopharmacy business is on track," Bhartias said.
The company said the contract manufacturing business continued to benefit from COVID related deals.
"Contract Research and Development Services business witnessed strong YoY growth in revenues led by healthy demand from customers. We have doubled our chemistry research capacity and the facility is operational now," Bhartias said.
On import alert issued by USFDA last week on the company's Roorkee formulations manufacturing facility, the company said it was engaging with the agency and taking help of consultants to resolve the regulatory compliance issues.
USFDA has exempted a few products. Some of the exempted products include Meclizine tablets, Olanzapine orally disintegrating tablets, Risperidone orally disintegrating tablets, Spironolactone tablets, and Valsartan tablets, subject to the company meeting a few conditions.
For the rest of the products, revenue impact for the company is less than 3 percent of total revenues.
Demerger of API business
Jubilant announced its Board has approved the demerger of the Active Pharmaceutical Ingredients (API) undertaking of Jubilant Generics Limited (JGL)- a wholly owned subsidiary and vesting of the same with Jubilant Pharmova, on a going concern basis.
The company said this business reorganisation will create a small molecule discovery and chemistry focused vertical presence across the value chain of CRO and CDMO of Innovative and Generic APIs. The reorganisation will strengthen and sustain long-term growth, profitability, market share, customer service, risk management as it requires focused management attention, different skill sets and resources.