- 07 Feb 2022
- ICICIdirect Research
Jubilant Pharmova reports washout quarter on all frontsJUBLPHARMA - 301 Change: -12.10 (-3.86 %)
News: Revenues were at Rs.1310.5 crore, down 26% YoY amid multiple headwinds in pharmaceutical segment. Generics declined 60.7% YoY to Rs.181 crore and CDMO segment declined by 42.6% YoY to Rs.373 crore. Specialty pharma (which comprises Radiopharma) grew by 8.8% YoY to Rs.633 crore while Contract research & development grew 51.9% YoY to Rs.120 crore on back of robust demand from customers. EBITDA margins declined by 1300 bps YoY to 14.8%. EBITDA de-grew 60.6% YoY to Rs.194.2 crore while Adjusted PAT declined 77.8% to Rs.51 crore.
Views: Jubilant Pharmova generics was affected by lower volumes due to Roorkee import alert, sartan impurities issue and pricing pressure in US while loss of Covid related opportunities led to lower revenue and profitability in the CDMO business. API business was affected by unplanned shutdown this quarter and is likely to normalise in Q4FY22. Multiple issues converged in Q3 leading to dismal numbers and although sartans issue has been resolved and exempted products sales have started in US, we expect near to medium term overhang to remain amid regulatory concerns for Generics and resetting of base post loss of Covid opportunities in CDMO.