Jubilant Life nears 52-week high, soars 41% in 8 days on strong Q4 results

Jubilant Life Sciences reported 92 per cent year on year (YoY) jump in normalised profit after tax at Rs 260 crore in Q4FY20. Ebitda margin also improved to 23.7 per cent from 16.3 per cent in Q4FY19.

Shares of Jubilant Life Sciences extended its seven-day rally and surged 12 per cent to Rs 625 on the BSE on Wednesday in the early morning deals after the company reported strong earnings for the quarter ended March 2020 (Q4FY20).

The stock of the pharmaceutical company was trading close to its 52-week high of Rs 639, touched on January 23, 2020. In the first eight trading days of June, the stock has zoomed 41 per cent as compared to 5 per cent rise in the S&P BSE Sensex.

Jubilant Life Sciences reported 92 per cent year on year (YoY) jump in normalised profit after tax at Rs 260 crore in Q4FY20, as against Rs 135 crore in Q4FY19. Revenue from operations remained flat at Rs 2,391 crore, as compared to Rs 2,386 crore in the previous year quarter.

The company’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) after one-off expenses stood at Rs 568 crore, and was up 46 per cent YoY from Rs 388 crore in the year-ago quarter. Ebitda margin improved to 23.7 per cent from 16.3 per cent in Q4FY19.

The management said despite the Covid-19 led challenges, the company continues to experience strong demand across most of its businesses. The company maintains positive outlook for business performance and healthy cashflow generation to reduce leverage, it said.

That apart, the company recently signed licensing agreement with US-based Gilead Sciences to register, manufacture and sell Gilead’s investigational drug, remdesivir, a potential therapy for Covid-19, in 127 countries including India, and is working towards launching the drug in July 2020.

At 10:11 am, Jubilant Life was trading 10 per cent higher at Rs 613 on the BSE, as compared to 0.28 per cent rise in the S&P BSE Sensex. A combined 1.5 million equity shares have changed hands on the counter on the NSE and BSE till the time of writing of this report.