Multiple challenges continue to affect Jubilant Pharmova's operationsJUBLPHARMA - 460 Change: -10.15 (-2.16 %)
News: Jubilant Pharmova’s revenues were at Rs 1527 crore, down 3% YoY. Generics declined 29% YoY to Rs 219 crore due to 1) lower volumes due to import alert at Roorkee plant, 2) pricing pressure in the US market and 3) lower Remdesivir sales. CDMO segment declined 19% YoY to Rs 466 crore as Covid related one-off deals tapered off and API volumes were lower. Specialty pharma (which comprises Radiopharma) grew 15% YoY to Rs 695 crore driven by easing of Covid-19 and some customer scheduling. Contract research & development grew 51% YoY to Rs 142 crore on the back of robust volume growth. EBITDA margins declined 752 bps YoY to 16.2% mainly due to lower profitability in pharmaceuticals segment. EBITDA de-grew 34% YoY to Rs 247 crore while adjusted PAT declined 67% to Rs 60 crore.
Views: Jubilant Pharmova generics remain affected while remediation measures are ongoing for Roorkee import alert. Loss of Covid related opportunities led to lower revenue and profitability in the CDMO business. API business was affected by stabilization issues post shutdown last quarter. Multiple issues are affecting several business segments and 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.