JB Chemicals and Pharmaceuticals posted a 21.64 per cent year-on-year (Y-o-Y) increase in net profit during Q3FY25, reaching Rs 162.4 crore, while revenue from operations increased by 14 per cent Y-o-Y to Rs 963.4 crore.
Sequentially, revenue declined by 3.71 per cent, with net profit also falling by 6.92 per cent.
Commenting on the results, Nikhil Chopra, chief executive officer and whole-time director of JB Pharma, stated, "JB has delivered consistent growth over the last few years, enabled by our mix of businesses and markets—specifically our focus on India branded formulations, CDMO, and select international markets that play to our strengths, with limited revenues in countries that might present trade-related or economic volatility challenges."
This quarter, the domestic formulations business was a key driver, achieving 22 per cent Y-o-Y growth with revenue of Rs 566 crore. The domestic market now accounts for 59 per cent of total revenue in 9M FY25, up from 55 per cent in 9M FY24.
Gross margins stood at 67.1 per cent for Q3FY25 and 66.5 per cent for 9M FY25. Excluding the ophthalmology business, gross margins improved in both periods, driven by cost optimisation, a favourable product mix, and price growth.
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Other expenditure as a percentage of sales decreased to 22.7 per cent in Q3FY25 from 23.2 per cent in Q3FY24.
Finance costs decreased significantly to Rs 3 crore from Rs 12 crore due to lower gross debt. The company had a net cash position of Rs 516 crore as of December 31, 2024, with gross debt at Rs 54 crore.
International business revenue grew by 4 per cent to Rs 397 crore in Q3FY25 compared to Rs 383 crore in the same period last year.
The international formulations business experienced a 4 per cent decline in Q3FY25, with revenue of Rs 254 crore. While the South Africa business and branded generics export markets showed growth, revenue from the US and Russia businesses decreased Y-o-Y.
The CDMO business demonstrated strong growth, recording a 33 per cent increase in Q3FY25.
The combined revenue from the domestic and CDMO businesses represented 70 per cent of the overall revenue for 9M FY25.
The stock rose by 1.59 per cent to Rs 1,741.35 a piece on the BSE. The results were announced after market hours on Tuesday.