Jubilant Ingrevia Q2 FY22 PAT stands at Rs 111 cr

On a consolidated basis, Jubilant Ingrevia's net profit stood at Rs 110.79 crore while total revenue from operations was at Rs 1,222.57 crore in Q2 September 2021.

On a pro-forma basis, the company's consolidated net profit jumped 43% to Rs 111 crore on a 56% increase in total revenue from operations to Rs 1,223 crore in Q2 FY22 over Q2 FY21. The revenues grew on the back of robust growth in volume and prices. The PAT growth was driven by rise in EBITDA, added by reduction in finance cost through reduction in gross debt and optimization of interest rates.

On a sectoral basis, Speciality Chemicals revenue jumped 17% Y-o-Y (year-on-year) driven by volume growth across product segments. Nutrition and Health Solutions revenue soared 43% Y-o-Y driven by higher volumes and growth in Niacinamide price. Life Sciences Chemical revenue surged 84% Y-o-Y, driven by higher prices on account of favorable market conditions and passing-on of higher input cost of acetic acid.

EBITDA soared 44% to Rs 202 crore in Q2 September 2021 over Rs 140 crore in Q2 September 2021, on account of strong performance of Life Sciences chemical segment led by favorable market conditions and volume growth in Nutrition and Health Solution. EBITDA margin was at 16.5% in Q2 FY22 as compared to 17.9% in Q2 FY21. Profit margin stood at 9.1% in Q2 FY22 as against 9.9% in Q2 FY21.

Commenting on the company's Q2 performance, Shyam S Bhartia, the chairman and Hari S Bhartia, the co-chairman of Jubilant Ingrevia, said, "With immense pleasure, I would like to announce that we have delivered yet another strong financial performance in Q2 FY22 and reported our highest ever revenue during the Quarter & Half Year ended 30 Sept. 2021. Supply disruptions from China is coming to our advantage, due to which we are witnessing strong demand in most of our products and that is giving us an opportunity to increase our share with the global customers, while on the sourcing side we are having negligible dependence on China. We are finding unprecedented increase in almost all the input raw materials, fuels like Coal & Gas & Logistic cost, however our business team is confident to pass on the incremental costs by working closely with customers."

"In our Specialty Chemicals segment we witnessed strong growth across the products led by growing demand from Pharmaceutical and Agrochemical customers. In Nutrition & Health Solution the demand of Vitamin B3 has been stable, and prices started to increase in Vitamin B3. We continue to work to improve our market share in niche segments like food and cosmetics. In Life Science Chemical Segment, we witnessed healthy demand from Pharmaceutical and Agrochemical customers resulting in volume growth in all the products."

"I am happy to announce that we reduced the net debt further by Rs 193 crore during Q2 FY22. Looking ahead we are excited with the growth opportunities in our businesses and we are fully committed to realize them. We have developed strong product pipeline using in-house R&D, our technical expertise into various chemistry platforms and long-standing relationship with global Pharmaceutical & Agrochemical customers including Innovators. We are prioritizing and investing in several growth capex in next 2-3 years to launch these products to achieve our growth target of doubling the revenue by FY26 from the base of FY21."

Shares of Jubilant Ingrevia tumbled 12.81% to Rs 706.25 on BSE. Jubilant Ingrevia is a global integrated life science products and innovative solutions provider serving pharmaceutical, nutrition, agrochemical, consumer and industrial customers with customised products and solutions that are innovative, cost-effective and conforming to excellent quality standards.

The company offers a broad portfolio of high quality ingredients that find application in a wide range of industries. The company has 2,100 employees and serves more than 1,400 customers in more than 50 countries across the world. The company's portfolio also extends to custom research and manufacturing for pharmaceutical and agrochemical customers on an exclusive basis.

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