J B Chemicals & Pharmaceuticals announced Q3FY24 & 9MFY24 results:
- JB Pharma registered revenue of Rs 845 crore in Q3FY24 (YoY growth of 7%) and Rs 2,622 crore in 9MFY24 (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 Q3FY24 and 14% in 9MFY24
- Domestic formulations business continued its momentum recording growth of 14% in Q3FY24 as well as in 9MFY24
- Our chronic portfolio continues to outpace market growth led by key brands
- In Q3FY24, International business revenue declined by 1% to Rs 383 crore due to the South Africa business
- In 9MFY24, International business revenue was at Rs 1,190 crore (YoY growth of 6%)
- Operating EBITDA was Rs 235 crore in Q3FY24 (YoY growth of 22%) and Rs 729 crore in 9MFY24 (YoY growth of 25%)
- Operating EBITDA margin was 27.8% in Q3FY24 (YoY improvement of 350 bps) and 27.8% in 9MFY24 (YoY improvement of 330 bps)
- Gross Margin was 67.6% in Q3FY24 (YoY improvement of 530 bps) and 66.4% in 9MFY24 (YoY improvement of 380 bps)
- Improvement in gross margins is primarily due to cost optimization and favorable product mix
- Depreciation increased by 21% to Rs 34 crore in Q3FY24 on account of acquired brands
- ESOP expenses were Rs 12 crore in Q3FY24 as compared to Rs 7 crore in Q2FY24
- Other expenses increased by 8% in Q3FY24 to Rs 196 crore due to higher freight costs on account of geo-political issues
- Net Profit improved by 26% in Q3FY24 and 32% in 9MFY24
Commenting on the financial results, 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 CY2023, 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.”