Jubilant Ingrevia shares slip ~4% on muted Q2 show

25 Oct 2024 , 04:38 PM

Shares of Jubilant Ingrevia Ltd fell more than 4% on Friday as the business reported a moderate year-on-year increase in net profit for Q2 FY25. The life sciences company declared a consolidated profit after tax (PAT) of ₹59 Crore in the quarter ending September 2024, a tiny 2.6% increase from ₹57 Crore last year.

At around 3.25 PM, Jubilant Ingrevia was trading 4.23% lower at ₹655.85, against the previous close of ₹684.80 on NSE. The counter touched an intraday low of ₹654.05.

The company’s net profit increased by 21.1% from ₹49 Crore in the previous quarter (June 30, 2024). The company’s overall sales increased by 2.5% year on year to ₹1,045 Crore, from ₹1,020 Crore the previous year, with a 2% sequential growth.

In Q2 FY25, the company’s total EBITDA increased by 7% year on year to ₹135 Crore, up from ₹126 Crore the previous year. The EBITDA margin increased to 13% for the quarter, compared to 12% in both Q2 FY24 and Q1 FY25. However, the PAT margin stayed stable at 6% year on year.

Jubilant Ingrevia attributed revenue and EBITDA growth to higher sales of Pyridine building blocks and Fine Chemicals in its Speciality Chemicals segment, as well as rising Vitamin B3 prices and volumes in its Nutrition & Health Solutions division.

However, greater logistics charges caused by container shortages and increased shipping prices due to the Red Sea issue had an impact on Q2 sales and EBITDA performance.

For feedback and suggestions, write to us at [e-mail]