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| Jubilant sees 50% growth in sales on offshoring, life sciences biz | |
| Joe C Mathew / New Delhi December 1, 2008, 22:12 IST | |
Jubilant Organosys, a Delhi-based integrated pharmaceutical company, said its sales would grow by 50 per cent in FY 2009, helped by a spurt in life sciences business and also outsourcing.
The drug maker’s forecast comes amid an expected drop in drug exports by at least 10 per cent owing to a slowdown in the developed countries including in the US and Europe. The company attributes the enhanced projection to its business model, which is largely dependent on the outsourcing opportunities in the international market.
“The service model adopted by our company is recession-proof,’’ Shyam S Bhartia, chairman and managing director, Jubilant Organosys, said. "We have given a guidance of 50 per cent growth. However, for life science segment, it is much higher."
The company registered 65 per cent growth in revenue in the first half of the current financial year.
Jubilant is the only leading Indian pharmaceutical company that does not have its own products in the domestic retail market. Its revenues are derived from the outsourcing business it does in the area of pharmaceutical manufacturing and services.
The company supplies raw materials to leading pharmaceutical firms mostly located in the US and Europe. It also does contract research for them. The company registered annual revenues of about Rs 2,500 crore in 2007-08, “In light of the improved production capacities, expanded product line-up and enhanced global scope of operations, Jubilant believes it will record more than 50 per cent rise in revenues for FY 2009,” Bhartia said.
The earnings outlook, however, does not consider any potential effect of exceptional items like unrealised foreign exchange gain / losses on account of restatement of outstanding FCCBs and foreign currency loans. Bhartia termed the effect of these items as “notional”.
The company’s revenues for the second quarter ended September 30 rose 52.1 per cent to Rs. 940.5 crore from Rs 618.3 crore in the corresponding quarter a year ago. While North America contributed 55.5 per cent, the revenues from the EU were 14 per cent.
“Jubilant is completely focused on outsourcing proprietary products, exclusive synthesis, active pharmaceutical ingredients, non-sterile products and specialty pharmaceuticals. In services we focus on drug discovery and drug development including medicinal chemistry and clinical trial services,” Bhartia said.
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