The pharmaceutical company also informed that Alok Vaish, Chief Financial Officer (CFO) and Key Managerial Personnel, has tendered his resignation from services of the Company which has been accepted by the Company. He shall continue in his current role until September 11, 2020.
In the past three trading days, the stock has declined 17 per cent, as compared to 0.78 per cent decline in the S&P BSE Sensex.
Jubilant Life Sciences reported 52 per cent year on year (YoY) drop in its consolidated net profit to Rs 88 crore from Rs 185 crore reported in the year-ago period. Consolidated revenue from the operations declined 13 per cent at Rs 1,893 crore on YoY basis. Adjusted Ebitda (earnings before interest, taxes, depreciation, and amortization) after one-off expenses contracted 510 basis points at 16.8 per cent from 21.9 per cent in Q1FY20.
The Company’s performance in the Pharma business had a temporary negative impact due to production suspension at its API plant. This facility has resumed operations from the month of June 2020 and since then it has been operating at a normal capacity.
The management said the company is witnessing strong demand conditions and improved pricing environment. Overall, barring unforeseen circumstances, it expects strong performance in Pharma, Life Science Ingredients (LSI) and Drug Discovery and Development Solutions (DDDS) business in the remaining three quarters of FY21.
“The company’s pharma revenue was affected due to production suspension at Nanjangud API plant while Radiopharma and Allergy business saw an interim decline in revenues due to postponement of elective procedures amid COVID-19 related restrictions on hospital/physician visits. The decline in Radiopharma was steeper than expected. Also, being a high-margin business, the decline in net earnings was much steeper. LSI revenue was affected by lower demand and prices of commodity chemicals (ethyl acetate and acetic anhydride), which was offset by better prices for the nutritional portfolio,” analysts at Nirmal Bang Equities said in results update.
The company hopes to accomplish the demerger by December’20/January’21. The demerger should allow price discovery for its Pharma and LSI businesses, it said.
At 10:52 am, Jubilant Life Sciences was trading 7 per cent lower at Rs 696 on the BSE, as compared to 0.62 per cent decline in the S&P BSE Sensex. Around 695,000 equity shares have changed hands on the counter on the NSE and BSE, so far.