Jubilant Life Sciences jumps on good earnings forecast

Jubilant Life Sciences rose 5.93% to Rs 140.30 at 10:38 IST on BSE after the company at the time of announcement of its Q3 December 2013 results said that revenue and EBITDA are expected to improve in the coming quarters.

The Q3 result was announced after market hours on Thursday, 6 February 2014.

Meanwhile, the S&P BSE Sensex was up 81.51 points or 0.4% at 20,392.25.

On BSE, so far 2.03 lakh shares were traded in the counter as against average daily volume of 90,797 shares in the past one quarter.

The stock hit a high of Rs 144 and a low of Rs 134 so far during the day. The stock had hit a 52-week high of Rs 215.40 on 13 February 2013. The stock had hit a 52-week low of Rs 65.10 on 28 August 2013.

 

The stock had outperformed the market over the past one month till 6 February 2014, advancing 4.41% compared with the Sensex's 2.29% fall. The scrip had also outperformed the market in past one quarter, jumping 26.2% as against Sensex's 2.8% fall.

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

Jubilant Life Sciences' consolidated net profit surged 437.39% to Rs 143.43 crore on 10.44% growth in total income from operations to Rs 1442.78 crore in Q3 December 2013 over Q3 December 2012.

The profit after tax (PAT) during the quarter was boosted by exceptional items.

Consequent to re-evaluation of certain tax provisions pertaining to earlier years (including deferred taxes), tax benefit (net of reversal of deferred tax assets and true up of current tax) amounting to Rs 78.96 crore and Rs 56.35 crore has been recognized in the current quarter and nine months ended 31 December 2013 respectively, the company said.

Amortization of debit balance in foreign currency monetary items translation difference account (FCMITDA) of Rs 25.40 crore, Rs 38.74 crore, Rs 22.45 crore, Rs 89.65 crore, Rs 45.60 crore and Rs 63.16 crore for the quarter ended 31 December 2013, 30 September 2013, 31 December 2012; nine months ended 31 December 2013, 31 December 2012; and year ended 31 March 2013 respectively, representing exchange difference on long-term foreign currency monetary liabilities which has been used for the purpose other than acquiring fixed assets, Jubilant Life Sciences said. The remaining amount of exceptional items for all periods primarily represents foreign exchange difference for the period (excluding portion included in finance cost) and mark to market gain/loss (net of related contractual recoveries) in respect of currency and interest rate swap contracts, the company said.

Commenting on the company's performance, Mr. Shyam S Bhartia, Chairman & Managing Director and Mr. Hari S Bhartia, Co?Chairman & Managing Director, Jubilant Life Sciences said, "The performance of Q3 FY 2014 reflects the strengths of our diversified portfolio of businesses. We are strengthening our quality systems to ensure flawless compliance and deliver better value to our stakeholders. We expect to perform better going forward due to new product launches under Solid Dosage Formulations, scale up in Speciality Pharmaceuticals and higher volume in Vitamins and Acetyl businesses".

With regard to future business outlook, Jubilant Life Sciences said the revenues and EBIDTA are expected to improve in the coming quarters led by improved capacity utilisations in Sterile Injectables and OCL, Nutrition Ingredients, Symtet and 3CP and backward integration of Pyridine and expansion to newer markets. The company said it expects revenue growth due to strong pipeline in APIs and Solid Dosage Formulations, new product launches, expansion in newer geographies in API and Formulations, and robust order book in Sterile Injectables.

Jubilant Life Sciences is a global pharmaceutical and life sciences company engaged in manufacture and supply of APIs, solid dosage formulations, radiopharmaceuticals, allergy therapy products and life science ingredients. It also provides services in contract manufacturing of sterile injectables and ointments, creams and liquids and drug discovery and development.

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