Jagsonpal Pharmaceuticals (JAGSNPHARM) Q1 24/25 earnings summary

Executive summary

• Q1FY25 saw a strong rebound with revenue up 41% sequentially and operating profit up 159% from Q4FY24; operating margin reached 20.6%.

• Unaudited financial results for the quarter ended 30 June 2024 were reviewed and approved by the Board and Audit Committee on 07 August 2024.

• The company operates as a single business segment focused on manufacturing and trading pharmaceutical products in India and overseas.

• Seamless integration of Yash Pharma business; margin alignment ahead of schedule.

• Robust cash position at ₹776 Mn post-acquisition; expected to return to ₹1,500 Mn by year-end with Faridabad facility sale.

Financial highlights

• Q1FY25 sales grew 41% sequentially to ₹614 Mn; year-over-year growth was 2%.

• Revenue from operations for the quarter was ₹614.39 million, up from ₹601.53 million in the same quarter last year.

• Net profit for the quarter was ₹53.29 million, compared to ₹74.79 million in the same quarter last year.

• Operational EBITDA (pre-ESOP) at ₹127 Mn, margin 20.6%; PAT at ₹53 Mn, up 51% sequentially, including a one-time ₹33 Mn acquisition expense.

• Basic and diluted EPS for the quarter were ₹1.94 and ₹1.93, respectively.

Outlook and guidance

• On track to deliver over 30% revenue growth and 20%+ operating margin for FY25.

• The acquisition of Yash Pharma’s India and Bhutan business is expected to broaden the company’s presence in dermatology and childcare products.

• Margin alignment of acquired business expected by Q4FY25.

• Cash position projected to recover to ₹1,500 Mn by year-end post asset sale.

• The sale of the Faridabad facility is expected to be completed by 31 October 2024.