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 revenue at INR 1,004 crores, up 12% year-on-year, reflecting robust growth across all key parameters.

• Domestic business contributed 60% of total revenue, growing 22% year-on-year, driven by strong brand performance and chronic therapies.

• 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 from operations was INR 1,004 crores, up from INR 896.2 crores in Q1 FY24.

• Operating EBITDA (excluding ESOP cost) rose 20% year-on-year to INR 292 crores, with margin improving to 29%.

• Profit after tax increased 25% year-on-year to INR 177 crores.

• Gross profit margin improved to 66.2%, up 80 basis points year-on-year.

• Gross debt reduced by INR 249 crores during the quarter, with net cash position at INR 313 crores and finance costs halved to INR 6 crores.

Outlook and guidance

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

• Domestic business expected to outpace Indian pharma market growth, targeting 12%-14% growth versus market's 8%-10%.

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

• International business, especially Russia and ROW, expected to sustain robust growth; South Africa to recover from Q2.

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