India, Feb 06, 2024 – JB Chemicals & Pharmaceuticals ltd (JB Pharma), one of the fastest growing pharmaceutical companies in India, announced its financial results for the quarter ended 31st December, 2023.
Quarterly Financial Performance – Q3 FY24 vs Q3 FY23
JB Pharma recorded revenue of INR 845 crores in third quarter of FY24 registering growth of 7% from INR 793 crores in Q3 FY23. Operating EBITDA* (Earnings before Interest Depreciation and Taxes) improved by 22% to INR 235 crores in Q3 FY24 as compared to INR 193 crores in Q3 FY23. Profit after Taxes registered strong growth of 26% to INR 134 crores in Q3 FY24 vs INR 106 crores in Q3 FY23
*Operating EBITDA is after excluding non-cash ESOP Charge
Commenting on the financial results, Mr. Nikhil Chopra, CEO and Wholetime Director, JB Pharma mentioned, “Our focus on growing the domestic business ahead of the market continues, as reflected in the Q3 performance. The business once again stands out in this quarter. For CY 2023, we are the fastest growing company within IPM amongst the top 25 pharma companies. We are excited about our recent Ophthalmology foray which has brought some of the biggest brands in that area into the JB family. The ophthalmology segment holds great promise as we expect this market to grow in mid-teens and consistently outperform IPM growth.
In the international division, the formulations business is stable. Our order book for the CDMO business is looking good for forthcoming quarters. Our approach to developing progressive portfolios is on track, resulting in a positive impact for the exports branded generics business.”
Financial Performance – 9M FY24 vs 9M FY23
For the nine months of the financial year 2023-24, the Company recorded revenue of INR 2622 crores as compared to INR 2387 crores, registering growth of 10%. Operating EBITDA* (Earnings Before Interest Depreciation and Taxes) increased by 25% to INR 729 crores as compared to INR 584 crores. Profit after Tax registered strong growth of 32% to INR 426 crores vs INR 322 crores in 9M FY23.
Financial Performance
Q3 FY24 vs Q3 FY23
| Particulars (INR Crores) | Q3 FY24 | Q3 FY23 | YoY Growth |
| Revenue | 845 | 793 | 7% |
| Operating EBITDA | 235 | 193 | 22% |
| Op. EBITDA Margin (%) | 27.8% | 24.3% | |
| Profit Before Tax | 184 | 141 | 31% |
| Profit After Tax | 134 | 106 | 26% |
9M FY24 vs 9M FY23
| Particulars (INR Crores) | 9M FY24 | 9M FY23 | YoY Growth |
| Revenue | 2622 | 2387 | 10% |
| Operating EBITDA | 729 | 584 | 25% |
| Op. EBITDA Margin (%) | 27.8% | 24.5% | |
| Profit Before Tax | 587 | 433 | 36% |
| Profit After Tax | 426 | 322 | 32% |
Sales Performance
Q3 FY24 vs Q3 FY23
| Particulars (INR Crores) | Q3 FY24 | Q3 FY23 | YoY Growth |
| Domestic Formulations | 462 | 407 | 14% |
| International Formulations | 383 | 386 | |
| Total Revenue | 845 | 793 | 7% |
9M FY24 vs 9M FY23
| Particulars (INR Crores) | 9M FY24 | 9M FY23 | YoY Growth |
| Domestic Formulations | 1432 | 1260 | 14% |
| International Formulations | 1190 | 1127 | 6% |
| Total Revenue | 2622 | 2387 | 10% |
Key Highlights
o JB Pharma registered revenue of INR 845 crores in Q3 FY24 (YoY growth of 7%) and INR 2622 crores in 9M FY24 (YoY growth of 10%)
-
- Overall revenue growth impacted by strategic choices made in international business especially South Africa
- Excluding South Africa business, revenue grew by 10% in Q3 FY24 and 14% in 9M FY24
o Domestic formulations business continued its momentum recording growth of 14% in Q3 FY24 as well as in 9M FY24
-
- Our chronic portfolio continues to outpace market growth led by key brands
o In Q3 FY24, International business revenue declined by 1% to INR 383 crores due to the South Africa business
-
- In 9M FY24, International business revenue was at INR 1190 crores (YoY growth of 6%)
o Operating EBITDA was INR 235 crores in Q3 FY24 (YoY growth of 22%) and INR 729 crores in 9M FY24 (YoY growth of 25%)
-
- Operating EBITDA margin was 27.8% in Q3 FY24 (YoY improvement of 350 bps) and 27.8% in 9M FY24 (YoY improvement of 330 bps)
o Gross Margin was 67.6% in Q3 FY24 (YoY improvement of 530 bps) and 66.4% in 9M FY24 (YoY improvement of 380 bps)
-
- Improvement in gross margins is primarily due to cost optimization and favorable product mix
o Depreciation increased by 21% to INR 34 crores in Q3 FY24 on account of acquired brands
o ESOP expenses were INR 12 crores in Q3 FY24 as compared to INR 7 crores in Q2 FY24
o Other expenses increased by 8% in Q3 FY24 to INR 196 crores due to higher freight costs on account of geo-political issues
o Net Profit improved by 26% in Q3 FY24 and 32% in 9M FY24
Domestic Business
o Domestic business revenue was INR 462 crores (YoY growth of 14%) in Q3 FY24 and INR 1432 crores in 9M FY24 (YoY growth of 14%)
o Chronic business continued to perform well while the acute business witnessed recovery despite muted season
-
- Increasing share of chronic mix has enabled better margins for the domestic business
o New launches in acute and probiotic business have also seen strong performance
o JB Pharma continues to be the fastest growing company amongst Top 25 in IPM (IQVIA MAT Dec’23 data)
-
- In Q3 FY24, JB Pharma grew at 13% vs IPM growth of 8% (IQVIA Q3 FY24 data)
- JB Pharma registered YoY growth of 16% vs CVM growth of 12% (IQVIA MAT Dec’23 data)
International Business
o International business recorded revenue of INR 383 crores in Q3 FY24 and INR 1190 crores in 9M FY24
-
- Excluding South Africa, the business registered single-digit growth in Q3 FY24 and double-digit growth in 9M FY24
o International formulations business recorded revenue of INR 265 crores in Q3 FY24 and INR 802 crores in 9M FY24
-
- South Africa tender business declined due to deliberate strategy of improving mix and margin profile
- RoW exports business recorded mid-teens growth in Q3 FY24
- Despite currency volatility, Russia business has maintained steady performance due to volume growth
o CDMO business witnessed muted performance in Q3 FY24. However, our order book for the forthcoming quarters looks healthy
o API business revenue was at INR 29 crores in Q3 FY 24 (YoY growth of 26%)
