JB Chemicals & Pharmaceuticals (506943) Q3 24/25 earnings summary

Executive summary

• Achieved consolidated revenue of INR 963 crore in Q3 FY25, up 14% year-over-year, and net profit of INR 162 crore, up 22% YoY; 9M FY25 revenue reached INR 2,969 crore.

• Domestic business grew 22% YoY to INR 566 crore, now contributing 59–60% of total revenue; international business grew 4% YoY, with CDMO segment leading at 33% growth.

• Progressive portfolio forms 65% of domestic business, up from 35% four years ago, and is growing faster than the Indian pharma market.

• Standalone and consolidated unaudited financial results for Q3 and 9M FY25 were approved by the Board and reviewed by auditors, with no material misstatements identified.

• Interim dividend of ₹8.5 per equity share declared, with record date set for February 8, 2025.

Financial highlights

• Gross margin for Q3 stood at 67.1%, slightly down from 67.6% last year; operating EBITDA margin improved to 28.1% in Q3 FY25.

• Finance costs reduced to INR 3 crore from INR 12 crore last year due to lower gross debt.

• Net cash position of INR 516 crore as of Dec 31, 2024; gross debt reduced to INR 54 crore.

• Basic EPS (consolidated) for Q3 FY25 was ₹10.46, up from ₹8.62 in Q3 FY24; nine-month EPS was ₹33.09, up from ₹27.53 year-over-year.

• MTM forex loss of INR 4 crore recorded due to ruble depreciation.

Outlook and guidance

• Operating margins expected to remain between 26%–28% despite inflation and market uncertainty.

• Q4 is expected to deliver double-digit growth in international business and maintain a strong CDMO order book.

• Gross margins projected to stay in the 66%–67% range, with potential for further improvement if product mix and market conditions remain favorable.

• ESOP costs guided at INR 56 crore for FY25, INR 40 crore for FY26, and INR 24 crore for FY27.

• India and CDMO businesses projected to constitute 75–80% of total revenue mid-term.