Jubilant Life Sciences Ltd's Q4FY18 consolidated net profit rises 63.34% yoy to Rs243.42cr : Beats Estimates

India Infoline Research Team | May 10, 2018 14:01 IST

The company’s consolidated revenue stood at Rs2,251.96cr, up 40.91% yoy and 8.91% qoq.

Jubilant Life Sciences Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 2,251.96 40.9
EBITDA 457.87 50.1
EBITDA Margin (%) 20.3 125
Net Profit (adjusted) 243.42 63.3
***EBITDA margin change is bps
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Reco. Price

860.2

Last updated on

09-May-2018

Jubilant Life Sciences' consolidated revenue in Q4FY18 rose 40.9% to Rs2,252cr vs. 1,598cr in Q4FY17. EBITDA in Q4FY18 was up 50.1% yoy to Rs458cr vs. Rs305cr in Q4FY17. EBITDA margins were at 20.3% in Q4FY18 vs. 20.2% in Q3FY18 and 19.1% in Q4FY17. PAT, however, grew by 2.3% yoy to Rs152.4cr. The PAT came lower as company had booked one‐time charges, adjusted for which PAT growth is higher at 63.3% yoy to Rs243cr in Q4FY18.
  • The pharmaceutical segment sales grew by 54% yoy to Rs1,238cr, while Life Sciences Ingredient (LSI) segment sales grew by 43% yoy to 968cr in Q4FY18.
  • Drug discovery sales in Q4FY18 stood at Rs47cr.
  • Overall international sales stood at 72% of total revenue, while rest 28% came from the domestic markets.
  • The consolidated EBITDA margin saw 125bps yoy and 17bps qoq expansion to 20.3% in Q4FY18.
  • EBITDA margins of pharmaceutical segment were at 24.1% in Q4FY18 vs. 22.1% in Q3FY18 and 26.9% in Q4FY17.
  • EBITDA margins of drug discovery solutions segment were at 21.3% in Q4FY18.
  • During the quarter, company booked one off charge on account of product development expenses due to rationalization of product portfolio to reflect the current market conditions prevailing in the global generic markets, US in particular.
  • Company has said that it is focussing on growing specialty injectables and maintaining better asset utilization in all businesses.
  • Cumulatively, company has filed 94 ANDAs in the US, of this, 59 ANDAs have been approved and 35 ANDAs are awaiting approval.
  • Company has also said that it sees a clear roadmap for growth in revenues and profitability in FY19 and expects H2FY19E to be better than H1FY19E.
  • Company is also planning capex of ~Rs550cr and R&D spending of Rs300cr in FY19E.

Concall Highlights:
  • Company has said that it is positive on its Radiopharma, CMO and the speciality injectables business.
  • The growth in Q4FY18 has came due to all round performance of all divisions and product rationalization.
  • In radiopharma, company expects to introduce five new products over next five years and has said that radiopharma is a high entry barrier business. Radiopharma contracts are of three-year duration and prices are not changed each year.
  • The Triad acquisition is moving as per management’s expectation.
  • In CMO, company is planning to add new capacity (new lyophilisation lines and increase in shifts) and has said that the CMO space has lot of demand but lacks capacity. The CMO order book is $702mn as of now.  Company has said that it is gaining market share in CMO and also witnessing new business addition.
  • Management has said that company enjoys cost advantage in the injectable business.
  • It also said that the US growth was on account of volume and price growth on some products in which some companies have moved out. The management expects this trend to likely continue in some products.
  • Company has written-off some ANDAs under development in the US, as these products are not attractive.
  • It, however, has also said that it will aggressively add new products to double its pipeline, mostly in complex products, over next three years.
  • Company is improving Acetic anhydride capacity from 100,000 tonnes to 145,000 tonnes due to growth in demand from new and existing customers.
  • Going ahead, to reduce the dependence on third party outsourcing of APIs, they are planning to set up their own API capacity.
  • On the regulatory front, all of Jubilant sites are fully compliant with the regulators and there is no pending issue.
  • Jubilant expects to generate strong FCFs going ahead, which will be used to reduce the debt and strengthen the balance sheet.
  • Company is hoping to complete the IPO of its pharma business in FY19E

Technical View: 

Jubilant Life Sciences Ltd ended at Rs. 846.75, up by 18.55 points or 2.24% from its previous closing of Rs. 828.20 on the BSE.
The scrip opened at Rs. 835 and touched a high and low of Rs. 864 and Rs. 828.75 respectively. A total of 27,67,267 (NSE+BSE) shares were traded on the counter. The stock traded below its 100 DMA.


***Note: This is a NSE Chart

 

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