JB Chemicals & Pharmaceuticals (506943) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly sales exceeding INR 1,000 crores for the first time, with Q1 FY25 consolidated revenue at INR 1,004 crores, up 12% year-on-year, reflecting robust growth across all key parameters.

• Domestic business now contributes 60% of total revenue, up from 44% in FY21, driven by strong brand performance and chronic therapies outpacing the market.

• International business remained stable at INR 409 crores, with growth in Russia and RoW offsetting a strategic decline in South Africa.

• Standalone and consolidated unaudited financial results for the quarter ended June 30, 2024, were approved by the Board on August 8, 2024.

• Statutory auditors conducted a limited review and found no material misstatements in both standalone and consolidated results.

Financial highlights

• Q1 FY25 consolidated revenue grew 12% year-on-year to INR 1,004 crores; standalone revenue was ₹95,231 lakhs.

• Operating EBITDA (excluding ESOP cost) rose 20% year-on-year to INR 292 crores; EBITDA margin expanded to 29%, up 190 basis points.

• Profit after tax increased 25% year-on-year to INR 177 crores; consolidated net profit after tax for Q1 FY25 was ₹17,683 lakhs.

• Gross profit margin improved to 66.2%, up 80 basis points year-on-year, aided by cost optimization and favorable product mix.

• Net cash position strengthened to INR 313 crores, with gross debt reduced from INR 357 crores to INR 108 crores during the quarter; finance costs halved to INR 6 crores.

Outlook and guidance

• Maintains operating EBITDA margin guidance of 26%-28%, expecting to deliver at the higher end despite inflationary pressures.

• Domestic business projected to grow 12%-14% for the year, outpacing the Indian pharma market.

• CDMO business expected to achieve double-digit growth in H2 FY25 as order book strengthens.

• International business, especially South Africa, anticipated to return to growth from Q2 onwards.

• Management continues to monitor geopolitical risks, especially regarding Russia and Ukraine, but expects full recoverability of receivables and assets.