J B Chem & Pharm Management Discussions


The Indian Pharmaceuticals Market continued to see growth in FY23, though the pace of growth slowed down, also due to the pandemic base effect. The industry growth rate for the year under review i.e. FY 22-23 was at 8% (IQVIA MAT Mar23) as compared to 18% (IQVIA MAT Mar22) for the previous financial year, and the growth was largely price driven. The Chronic therapy market outperformed the acute market growing at 11% vs 6% growth in Acute (IQVIA MAT Mar23). The performance of the acute therapy also impacted the industry growth. As per IQVIA MAT Mar23 data, the domestic formulations industry sales stood at 200,507 crores recording growth of 8% in value while the volumes dropped by 0.4%. The market resumed normalcy with no covid wave during the year. Antineoplast/Immunomodulator was the fastest growing therapy in the IPM, growing at 23% (IQVIA MAT Mar23 data). On the international front, the inflationary environment was witnessed globally. Even though there was a revival in demand across markets, operating margins were under pressure. During the year under review, logistics costs reached near-normal levels which was a respite for pharmaceutical companies servicing export markets. However, the geopolitical and economic developments in some regions continue to be a reason of concern and impacting demand.


Domestic Business:

The Company is engaged in only one segment viz. pharmaceuticals.

During the year under review, while the Indian Pharmaceuticals market grew by 8% (IQVIA MAT Mar23), JB Pharma outpaced industry to record growth of 22%. During the year under review, the Company was the fastest growing company among the top 25 pharma companies in the industry. This is the second financial year in a row that the Company has been the fastest growing among the top 25 companies.

For the year under review, the domestic formulations business recorded revenue of 163,965 lakhs as compared to 118,827 lakhs for the previous financial year recording growth of 38%. The domestic formulations business set new peaks during the year under review. The business performed well across all parameters. While JB Pharma outperformed industry growth, it performed well across its therapy areas and there was rank improvement in all its big brands.

The Companys five pronged strategy showed results during the year.

1. Realigned Go-To-Market(GTM) model to drive productivity

The Companys GTM model is focussed on improving the productivity and enhancing focus on key brands and their lifecycle management. The Company also gained rank during the year under review and ranks #24 in the Indian Pharmaceuticals Market. Its growth rate in prescription for the year under review was 27% and it maintained #15 position by prescription in the market. The newly acquired brand ‘Azmarda became the 6th brand to enter the

Top 300 in IPM and is ranked #261 (IQVIA MAT Mar23). The other 5 brands continue to dominate their respective covered markets and gained ranks during the year. During the year under review, the Company launched 17 new products in FY23.

2. Increasing Contribution from Chronic Therapies

The focus for the Company continues to be to strengthen its presence in chronic therapies. The acquisition of Azmarda and the Razel franchise reinforce this commitment. During the year under review as per IQVIA MAT Mar 23 data, the Companys chronic cluster grew by 24.4% as compared to the previous financial year.

During the year under review, the Company was the fastest growing company in cardiology segment, among the top 10 players growing by 17.6%. The Company now ranks No. 8 in the cardiology segment and has gained 5 ranks in the last financial year. The Company will continue to focus on chronic therapies.

3. Making big brands bigger

All the five focussed brands continue to perform well in their respective categories gaining ranks in IPM top 300 brands list (IQVIA). Rantac (anti-peptic ulcerant), with market share of 42% in its category now ranks # 35 among the top 300 and grew by 22% as per IMS MAT Mar23 data. Cilacar (Calcium Channel Blocker) with market share of 52% in its category was ranked # 44 among the top 300 and grew by 18% as per IMS MAT March 23 data. Metrogyl (amoebicide) with market share of 77% in its category was ranked # 142 among the top 300 and grew by 30% as per IMS MAT Mar23 data. Cilacar - T (calcium channel blocker/angiotensin receptor blocker) with market share of 36% in its category was ranked # 194 among the top 300 and grew by 24% as per IMS MAT Mar23 data. Nicardia (calcium channel blocker) with market share of 91% in its category was ranked # 172 among the top 300 and grew by 27% as per IMS MAT Mar23 data. Azmarda became the sixth brand in IQVIA Top 300, ranking at # 261 as per MAT Mar23 data.

4. Accelerating Growth through New launches

The Company continued its focus on its newly introduced products in the market. During the year under review, the Company introduced 17 new products in FY23 in the field of Gastro Intestinal, Gynaecology, Respiratory and Anti Diabetes.

New Introductions accounted for 2.4% of the total domestic sales as per IQVIA MAT March23 data.

5. Acquisition-led growth, via strong brand franchises

One of the pillars of the strategy has been acquisition-led growth with the objective to invest in value-accretive brands and franchises which can further strengthen the India business. During the year under review, the Company completed three major acquisitions - the ‘Azmarda brand from Novartis, a niche Paediatric portfolio from Dr Reddy and the ‘Razel franchise from Glenmark.

Azmarda (Sacubitril-Valsartan) from Novartis which expanded Companys cardiac portfolio to now include heart failure. Sacubitril-Valsartan is one of the fastest growing molecules in the cardiology segment for the last few years and Azmarda has a sizeable market share in the segment.

The Paediatric portfolio, which included 4 brands - Z&D, Pecef, Pedicloryl and Ezinapi, was our second acquisition for the year and complemented our existing Paediatric division. 3 out of the 4 brands are among the top 3 in their respective molecule market space with Z&D and Pedicloryl being market leaders. The brands did not require any significant manpower addition and improved our market coverage by almost 30% in the paediatric segment.

The Razel franchise, our latest acquisition, marked our entry into the ‘Statin market which is the largest segment in cardiac therapy growing at double digit rates. Razel ranks among the top 10 brands in the Rosuvastatin molecule space. The brand is now placed under high priority promotion in an existing team and will enhance our prescription productivity with cardiologists and consulting physicians. Post the acquisition of Razel and Azmarda, JB Pharma now ranks # 8 in the cardiac therapy segment as per IQVIA MAT March23 data.

International business:

The Company operates distinct operating models across multiple international markets with direct presence in Russia and South Africa as well as distributor relationships in the U.S. and large number of markets across Asia, Africa and Latin America.

The Company also has a leading global position in the contract development and manufacturing (CDMO) of medicated lozenges driven by marquee client relationships. The CDMO business witnessed growth of 60% on the back of increased demand from existing clients while the Company also added one new global multinational customer.

The CDMO business provides a great opportunity for growth. The organisation is currently ranked among the top 5 manufacturers of lozenges globally and boasts of some big consumer health/ FMCG companies.

Enhanced focus on ANDA filings, new product introduction in home markets, increased focus on the private market segment in South Africa and growing CDMO business remain our key growth drivers for the international business. This is backed by the state-of-the-art manufacturing facilities that are approved by regulatory bodies such as US FDA, TGA Australia, EU GMP, SAHPRA South Africa, MoH-Russia, Ukraine (PICs), MoH Japan with a wide range of products across injectable, solids and semi-solids.

During the year under review, the Companys international business recorded revenue of 150,963 lakhs as compared to 123,597 lakhs recording growth of 22%. The Companys overall International formulations business during the year under review was 101,026 lakhs; the CMO business was 40,578 lakhs and the API business was 9,359 lakhs.


The Indian economy looks to be in a bright spot and remain largely unaffected by the global headwinds. The Indian Pharmaceuticals Market grew by 8% in the year under review and is indicated to grow at higher pace in the upcoming Financial Year.

JB Pharma endeavours to continue to grow faster than the market thereby maintaining its growth momentum by executing its laid down strategy of new product introduction and making existing brands bigger.

On the international front, the global macro environment continues to remain challenging and a moderated inflationary environment will continue in this year. The Companys endeavour shall be to continue growth on the back of new product launches, ANDA commercialisation and geographies/ customer expansion. These growth measures shall help mitigate some of the challenges of volatility in currency, geopolitical issues and variability of the cough and cold season.

However, given all the challenging conditions we still remain optimistic about the next financial year.


The Company does not perceive any risks or concerns other than those that are common to the industry such as regulatory risks, exchange risk, cyber risks and other commercial and business-related risks.

internal control systems and their adequacy

The Company has an adequate system of internal controls, which ensures that its assets are protected from loss and unauthorized use as well as business affairs are carried out in accordance with established procedures. These systems of internal controls also ensure that transactions are carried out based on authority and are recorded and reported in line with generally accepted accounting principles. The Company also has a system of regular internal audit carried out by competent professionals retained by the Company. The internal audit programme is approved by the Audit Committee, and findings of the internal auditor are placed before the Audit Committee and the Board at regular intervals. The internal control system are adequate keeping in view size and nature of the Companys business.


Consolidated financial performance of the Company with respect to operational performance for the financial year ended on March 31, 2023 is as under:


2022-23 ( in lakhs)

2021-22 ( in lakhs)

Growth (%)

Revenue from operations




Total income




Reported EBITDA




Operating EBITDA (excl ESOP Cost)




Profit before tax and exceptional item




Profit after tax




During the year under review, the Company recorded revenue growth of 30% with the domestic business growing by 38% while the international business grew at 22%. The reported EBITDA witnessed an improvement of 28% to 69,575 lakhs vs 54,346 lakhs in FY22. The Operating EBITDA (excluding ESOP costs) increased by 26% to 76,513 lakhs.

Standalone financial performance of the Company for the financial year ended on March 31,2023 is as under:


2022-23 ( in lakhs)

2021-22 ( in lakhs)

Growth (%)

Revenue from operations




Total income




Reported EBITDA




Operating EBITDA (excl ESOP Cost)




Profit before tax and exceptional item




Profit after tax





There has been no material development on human resources and industrial relations front. The relationship with employees and workers continued to be cordial at all levels. As on March 2023, permanent employees strength and temporary employees strength was 5,095 and 2,193 respectively.


The key financial ratio for 2022-23 and changes therein as compared to the immediately preceding financial year along with detailed explanation in cases where the change is 25% or more is as under:

a) Debtors Turnover ratio: Net Sales/Average account receivables

This ratio for the year was 5.57 (times) as against 5.13 (times) in the previous year.

b) Inventory Turnover ratio: Cost of Goods sold/Average inventory

This ratio for the year was 2.78 (times) as against 2.23 (times) in the previous year.

c) Debt service coverage ratio: Earnings Available for Debt Services /(Finance Cost + Current borrowings including lease liabilities)

This ratio for the year was 2.97 (times)* as against 12.81 (times) in the previous year.

*(Mainly driven due to higher debts repayment during the year)

d) Current Ratio: Current assets/Current liabilities

This ratio for the year was 2.65 (times) as against 3.27 (times) in the previous year.

e) Debt-Equity ratio: Borrowings/Total Shareholders Equity

This ratio for the year was 0.231:1 (times)* as against 0.026:1 (times) in the previous year.

A(Mainly driven by term loan taken for acquisition of brands)

f) Operating Profit Margin : EBITDA(excl ESOP charge)/Sales

Operating profit margin for the year was 24.29% as against 25% in the previous year.

g) Net Profit Margin: Net Profit/Net Sales

Net profit margin for the year was 13.02% as against 15.92% in the previous year.

The ratio for the previous year has been re-stated wherever necessary to make it comparable to current year calculation.


Return on Equity during the year was 16.53% as against 18.09% in the previous year. The ROE was impacted due to ESOP charges, lower treasury income, higher depreciation and financial costs with respect to acquisitions.

For and on behalf of the Board of Directors

Ranjit Shahani Chairman

Place : Mumbai Date : May 24, 2023