Jubilant Lifesciences drops after NGT's order

Jubilant Lifesciences dropped 2.04% to Rs 772.95 at 11:25 IST on BSE after National Green Tribunal ordered 13 industrial units situated in Gajraula to immediately cease operations after a hearing on Ganga pollution case.

Jubilant Lifesciences and Jubilant Industries separately made announcements in this regard before market hours today, 27 April 2017.

Meanwhile, the S&P BSE Sensex was down 37.72 points or 0.11% at 30,100.58.

On the BSE, 56,744 shares were traded on the counter so far as against the average daily volumes of 1.06 lakh shares in the past one quarter. The stock had hit a high of Rs 778 and a low of Rs 761 so far during the day.

The stock had hit a record high of Rs 879.10 on 12 April 2017 and a 52-week low of Rs 294.20 on 24 June 2016.

The stock had underperformed the market over the past one month till 26 April 2017, rising 0.17% compared with the Sensex's 2.42% rise. The scrip had, however, outperformed the market over the past one quarter, gaining 10.4% as against the Sensex's 8.75% rise.

The large-cap company has equity capital of Rs 15.93 crore. Face value per share is Rs 1.

Jubilant Lifesciences said that the National Green Tribunal (NGT) in a hearing on 26 April 2017, in a case relating to the pollution of the river Ganga and drainage canals leading into the river Ganga, has, by way of an oral pronouncement, ordered 13 industrial units situated in Gajraula near the river Bagad to immediately cease operations.

The order of the NGT applies to the company's units in Gajraula. The units belong to Jubilant Agri & Consumer Products (JACPL), Jubilant Industries' wholly owned material subsidiary.

A committee has been set up by the NGT to inspect amongst other things, the discharge of effluents by the affected industrial units and to provide a report. Each industry has been given an opportunity to respond to the report with an action plan to resolve any deficits identified by the committee, in order to resume operations, within a week of submission of the report.

While a written order of the NGT is awaited, JACPL will comply with the oral order of the NGT and will file its response to the report as submitted by the committee, along with an action plan to resolve deficits identified by the committee, if any, before the NGT shortly.

JACPL is environmentally conscious and as a good corporate citizen, is taking all necessary steps in this regard. JACPL operates its manufacturing facilities in Gajraula with zero liquid discharge and in compliance with all applicable laws and it is confident of meeting any requirements that the NGT may prescribe and resuming operations of its industrial units at Gajraula at the earliest, it added.

Meanwhile, shares of Jubilant Industries dropped 1.32% to Rs 314.50.

Jubilant Life Sciences' consolidated net profit fell 2.6% to Rs 119.78 crore on 8.7% rise in net sales to Rs 1438.81 crore in Q3 December 2016 over Q3 December 2015.

Jubilant Life Sciences is an integrated global pharmaceutical and life sciences company engaged in pharmaceuticals, life science ingredients and drug discovery solutions. The pharmaceuticals segment, through its wholly owned subsidiary Jubilant Pharma, is engaged in manufacture and supply of APIs, solid dosage formulations, radiopharmaceuticals, allergy therapy products and contract manufacturing of sterile and non-sterile products through 6 USFDA approved manufacturing facilities in India, USA and Canada.

The life science ingredients segment, is engaged in specialty intermediates, nutritional products and life science chemicals through 5 manufacturing facilities in India. The drug discovery solutions segment, provides proprietary in-house innovation & collaborative research and partnership for out-licensing through 3 world class research centres in India and USA.

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