Jagsonpal Pharma Q2 PAT rises 82.3% yoy; Revenue up 5.3% yoy; Stock jumps 3%

The company announces an Interim Dividend of Rs4 per Equity Share. Brings Accenture on board to chalk out a Business Transformation Plan.

Oct 20, 2021 10:10 IST India Infoline News Service

Quarterly Results
Jagsonpal Pharmaceuticals Ltd., a leading pharmaceutical company from Delhi, announced their Q2FY22 results in the Board Meeting held on October 19, 2021.

The total income of the company was at Rs598 mn, registering a growth of 5.3% yoy.  Profit after Tax stood at Rs73 mn, registering a growth of 82.3% yoy. EPS was Rs2.79 as compared to Rs1.53; a growth of 82.3%.

The company reported an EBITDA of Rs106 mn, up 101.3% yoy translating to an EBITDA margin of 17.7%. This was an increase in the margin of 844 bps.

EBITDA margin improved due to:
  • Increase in sale of high margin products
  • Improvement in the ratio of manufacturing cost overheads as a percentage of the sale
  • Better financial control and monitoring of other administrative expenses
At around 10.15 am, Jagsonpal Pharmaceuticals Ltd was trading at Rs167.30 per piece up Rs5.10 or 3.14% from its previous closing of Rs162.20 per piece on the BSE. The stock hit a day's high of Rs170 per piece on Wednesday.
Jagsonpal Pharmaceuticals Ltd is currently trading at Rs164.85 up by Rs2.65 or 1.63% from its previous closing of Rs162.20 on the BSE.
“We have delivered another steady quarter of revenues while our EBITDA margins continue to show consistency. As mentioned in the last quarter, our efforts on product rationalization, focus on high margin products, cost control initiatives and improvement in operational matrix with better supply chain management have started yielding results. I would like to highlight that the Company has recorded an EBITDA of Rs207 mn in the first half of this fiscal against Rs235 mn reported for the whole year in fiscal 21 and Rs87 mn in H1FY21. We expect the momentum to continue in the H2 FY22 barring unforeseen circumstances,” R.P.S. Kochhar, Chairman & Managing Director,
Jagsonpal Pharmaceuticals, said.

“The board has approved an Interim Dividend at 80% per Equity Shares of face value of Rs5/-, which translates to Rs4 per equity share. The decision was taken by the board keeping in mind the excess cash in the balance sheet with no immediate capex plans in the horizon. The board will continue to assess the cash situation and reward shareholders after meeting all the needs of the Company.

In keeping with its strategy for growth, the Company has engaged Accenture to review and chalk out a business transformation plan with a focus on revenue growth, cost optimization and building organization enablers,” Kochhar added.

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