You are here: Home » Markets » News
Business Standard

Jubilant Life slips 17% in 3 days on weak Q1 results, CFO's resignation

The management said the company is witnessing strong demand conditions and improved pricing environment

Jubilant Life Sciences | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

pharmacy, drugs, medicine, pharma companies, pharmaceuticals, vaccine, coronavirus, covid, testing
Representative image

Shares of declined for the third straight day, down 8 per cent to Rs 686 on the BSE on Wednesday after reporting weak earnings for the quarter ended June 2020 (Q1FY21).

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.

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, 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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, September 09 2020. 10:55 IST