Jubilant Life Sciences Q2 net up 42% to Rs 82 cr

Jubilant Life Sciences today said its consolidated net profit rose by 41.37 per cent to Rs 82 crore for the second quarter ended September 30, 2010, over the same period previous fiscal.

The company, which was formerly known as Jubilant Organosys, had a net profit of Rs 58 crore in the same period last fiscal.

The company's consolidated revenue for the second quarter stood at Rs 988 crore with international business contributing 62 per cent to the top line.
    
"Long term contracts on hand, along with the newly signed contracts and deals in pipeline, confirm buoyancy trend towards outsourcing in contract research and manufacturing (CRAMS) space," Jubilant Life Sciences (JLS) CMD Shyam S Bhartia said in a statement.
    
He added, "As for the agri and performance polymers (APP) business performance, the strong growth has been driven by robust sales in agri products which is expected to continue."
    
During the second quarter, the company signed a long term contract worth $51 million in CRAMS business with a leading US Life Sciences company.
    
The company is further in discussions to increase the contract value to more than 2.5 times, JLS said, adding that it also signed another contract worth $33 million with a US-based firm in CRAMS segment.
    
The pharma and life science products and services (PLSPS) revenues were at Rs 850 crore, contributing 86 per cent to the total revenues of the company.
    
The company's agri and performance polymers (APP) business witnessed a  growth of 29 per cent in sales to Rs 138 crore and contributed 14 per cent of total consolidated revenue.
    
The company had changed its name with effect from October 1, 2010, in order to create a focused life sciences entity. It is also demerging its APP business into an independent entity which will function as Jubilant Industries and will be listed by next year.
    
"We expect to list the new entity by first week of January subject to approval from stock exchanges," Jubilant Life Sciences Executive Director R Sankaraiah said.
    
The demerger will enable focused growth across businesses for both the entities and will allow the companies to deliver value to its stakeholders, the company said.
     
The Court has sanctioned the scheme and the same would become effective in November 2010, it added.
     
The company's net profit for the six months ended September 30, stood at Rs 145 crore, compared to Rs 184 crore last fiscal.
    
Shares of Jubilant Life Sciences toady closed at Rs 312.60 on Bombay Stock Exchange, down 2.02 per cent from its previous close.