Jubilant Life Sciences Q1 net profit slips 7.68 % to Rs 185 cr

Drug firm Jubilant Life Sciences on Friday reported a 7.68 per cent decline in its consolidated net profit to Rs 184.98 crore for the quarter ended June 30, mainly due to higher expenses.

The company had posted a net profit of Rs 200.37 crore for the same period previous fiscal, Jubilant Life Sciences said in a BSE filing.

Consolidated total revenue from operations, however, rose to Rs 2,181.86 crore for the quarter under consideration as against Rs 2,078.65 crore in the same period a year ago.

The total expenses of the company for the June quarter stood at Rs 1,922.53 crore. It was Rs 1,779.86 crore for the year-ago period.

"We have had a steady performance during the quarter. Pharmaceutical segment revenues have been higher by 12 per cent YoY led by growth in CMO, Radiopharma and Allergy Therapy Products businesses," Jubilant Life Sciences Chairman Shyam S Bhartia and Co-Chairman & MD Hari S Bhartia said in a statement.

In life science ingredients segment, revenues have been 5 per cent year-on-year lower, mainly due to decline in input prices that affected selling prices, it added.

Profitability improved due to volume and value increase in specialty intermediates and nutritional product businesses, the statement said.

"Demand conditions for our businesses remain robust in key segments and we expect to deliver sustainable growth, going forward," it added.

In a separate filing, the company said its board considered the option of reorganising its businesses to create separate and focused entities for pharmaceuticals and life science ingredients businesses to manage different risks, rewards and regulatory requirements.

Other objectives for this consideration was to enable strategic growth for these businesses with optimal capital structure and potentially unlock shareholders value with direct ownership in each of the business entities, it added.

The board has also constituted a committee to evaluate various options including reorganisation / demerger of business undertakings on a going concern basis and provide its recommendations to it.

Shares of Jubilant Life Sciences were trading at Rs 445.70 per scrip on BSE, down 0.26 per cent from its previous close.