JB Pharma Reports 12% Revenue Growth & 25% Increase In Net Profit For Q1 FY25

JB Chemicals & Pharmaceuticals (JB Pharma), revealed its financial results for the quarter ending June 30, 2024. 

The company in a press statement on Friday informed that it has crossed the Rs 1,000 crores mark in quarterly sales for the first time.

For Q1 FY25, JB Pharma reported a revenue of Rs 1,004 crores, reflecting a 12 per cent increase from Rs 896 crores in Q1 FY24. The company's operating EBITDA (Earnings Before Interest, Depreciation, and Taxes) improved by 20 per cent, reaching Rs 292 crore compared to Rs 243 crore in the same quarter of the previous year. Additionally, the profit after taxes (PAT) surged 25 per cent to Rs 177 crores, up from Rs 142 crores in Q1 FY24. Profit Before Tax (PBT) was Rs 240 crores, an increase of 24 per cent from Rs 194 crores. The net profit rose by 25 per cent to Rs 177 crores.

Nikhil Chopra, CEO and Wholetime Director of JB Pharma, commented on the financial results stating,  “Our overall performance in the first quarter has been robust. We have reached a new milestone of Rs 1,000 crores in quarterly sales for the first time, with improvement across all parameters — revenue, gross profit, operating profit, and operating profit margin. Strong performance in the domestic business has continued, with each of the big brand franchises witnessing market-beating growth. We expect the international business, including the CDMO sector, to pick up in the second half of the financial year. The good start in the first quarter augurs well for the balance of the fiscal year. We are confident about meeting our operating and strategic goals for the year and remain focused on making the organisation progressive and future-ready.”

Sales Performance – Q1 FY25

In terms of sales, the domestic formulations business recorded revenue of Rs 595 crores, up 22 per cent from Rs 489 crores. The international business saw a marginal increase to Rs 409 crores from Rs 407 crores. The ophthalmology portfolio showed limited margins, but gross margins improved to 66.2 per cent from 65.4 due to cost optimisation and favourable product mix.

Key Highlights

JB Pharma’s domestic business continued its strong performance, achieving a 22 per cent increase in revenue, excluding the ophthalmology portfolio, which grew by 13 per cent. The company's ranking in the Indian Pharmaceutical Market (IPM) improved, with significant growth in major brands. In the international sector, the formulations business grew by 5 per cent, while the CDMO business experienced a decline due to seasonal factors but is expected to recover in the latter half of the year.

Domestic Business

The domestic sector saw significant growth, with JB Pharma gaining a rank to #21 in IPM as per IQVIA MAT June 2024 data. The company outperformed the IPM growth rate, achieving a 10 per cent growth compared to IPM's 7.6 per cent. The major brands, including Cilacar, Cilacar-T, and Sporlac, showed strong performance, with Sporlac surpassing Rs 100 crores in sales.

International Business

The international revenue remained stable, impacted by strategic decisions and muted CDMO business. The CDMO sector recorded Rs 106 crores in revenue, compared to Rs 119 crores previously. The international formulations business grew by 5 per cent, while the API business remained flat at Rs 13 crores.