Jubilant Life Sciences Ltd's Q3FY19 consolidated net profit rises 25.69% yoy to Rs267.52cr : In-line with Estimates

The company’s consolidated revenue stood at Rs2,377.10cr, up 14.96% yoy and 4.74% qoq.

Feb 04, 2019 03:02 IST India Infoline Research Team

Jubilant Life Sciences Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 2,377.10 15.0
EBITDA 493.26 18.3
EBITDA Margin (%) 20.8 59
Net Profit (adjusted) 267.52 25.7
***EBITDA margin change is bps

Jubilant Life’s revenue in Q3FY19 grew by 15% yoy to Rs2,377.1cr. EBITDA grew by 18.3% yoy to Rs493.3cr in Q3FY19 vs. Rs416.8cr in Q3FY18. EBITDA margins were at 20.8% in Q3FY19 vs. 19.8% in Q2FY19 and 20.2% in Q3FY18. PAT grew by 25.7% yoy to Rs267.5cr in Q3FY19. The results are in line with our expectations and we maintain a buy rating on the stock.

Other highlights

1) Specialty pharma business
  • Jubilant Life’s pharmaceuticals revenue in Q3FY19 grew by 29.3% yoy to Rs1,418cr. This was due to the growth in its all businesses, specialty pharma business grew by 24% yoy, while CMO business grew 27% yoy and generics business grew by 52% yoy.
  • EBITDA margins of Specialty pharma were at 28.1% in Q3FY19 vs. 28.9% in Q3FY18, while that of the CDMO business were at 32.9% in Q3FY19 vs. 21.8% in Q3FY18.
  • EBITDA margins of generic business stood at 19.7% in Q3FY19 vs. 21.5% in Q2FY19 and loss at EBITDA level in Q3FY18.
  • Combined margins of the pharma business were at 27.7% in Q3FY19 vs. 22% in Q3FY18 and 27.5% in Q2FY19.
  • Company has said that sp. Pharma is seeing higher revenue due to higher volumes and better realisations in Radiopharma business.
  • In its venom business, company is seeing normalization after its competitor uploaded the inventory in H1CY18.
  • Spokane CMO, capacity expansion has started, which will increase capacity by 25% and will commercialize by H1FY20. Company has started to work 24x7 at its Spokane facility to increase capacity.
  • Roorkee new capacity is under commissioning for commercial production and company has responded to the USFDA on the adverse observations.
2) Life Science Ingredients business
  • Life Science Ingredients revenue declined by 2% yoy to Rs899cr, while EBITDA margins stood at 14% in Q3FY19 vs. 12.3% in Q2FY19 and 22.3% in Q3FY18.
  • In the nutritional business, company expects vitamin B3 demand to normalize in the coming quarters.
  • In speciality intermediates, company has launched 4 products and two more products are expected in Q4FY19E.
  • In Life Science Chemicals business, company witnessed stable demand for Acetic Anhydride and Ethyl Acetate in domestic market. During Q3FY19, acetic acid prices were lower.
  • New acetic anhydride plant, which has revenue potential of Rs400cr/yr, will commission in Q4FY19E.
  • In the Ethanol Blending Program, company has bagged new annual contract with higher volumes and prices.
  • Net debt stood at Rs3,118cr by end of 9MFY19 vs. Rs3,231cr in FY18.

Technical View:

Jubilant Life Sciences Ltd is currently trading at Rs. 719, up by 7.45 points or 1.05% from its previous closing of Rs. 711.55 on the BSE.
The scrip opened at Rs. 716.15 and has touched a high and low of Rs. 728.95 and Rs. 716.15 respectively. So far 29,872 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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