homebusiness Newscompanies NewsJubilant Pharmova Q3 Result: Multiple issues lead to net loss, margin drops 450 basis points

Jubilant Pharmova Q3 Result: Multiple issues lead to net loss, margin drops 450 basis points

During the same quarter last year, the company had reported a net profit of Rs 50.9 crore.

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By Ekta Batra  Feb 3, 2023 7:26:01 PM IST (Updated)

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Jubilant Pharmova Q3 Result: Multiple issues lead to net loss, margin drops 450 basis points
Jubilant Pharmova reported a net loss of Rs 15.67 crore for the December quarter due to multiple issues. Prominent among them were lower Covid-19 related deals in the CDMO sterile injectable business, supply issues in the radiopharmacies business, lower production in the CDMO API business and lower volumes in drug discovery.

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During the same quarter last year, the company had reported a net profit of Rs 50.9 crore. Net profit during the September quarter stood at Rs 5.5 crore.
Revenue growth for the quarter stood at 18 percent from last year, mainly led by the specialty pharma, generics and CRDMO business. Within the specialty pharma business, both radiopharma and allergy immunotherapy businesses saw growth in the high-teens. Radiopharma business grew 20 percent from last year.
The generics business saw revenue growth of 30 percent from last year and also narrowed its losses both year-on-year as well as sequentially.
Within the generics business, the company has undertaken a large scale business transformation which is focused on turnaround through cost optimisation and driving growth in branded markets in India and select international markets.
Although the CRDMO business saw revenue growth of 23 percent year-on-year, its margin contracted 150 basis points from last year and nearly 800 basis points from the September quarter.
Jubilant Pharmova's overall operating performance was weak with EBITDA margin dropping over 450 basis points from last year. Operating profit or EBITDA also fell below the Rs 200 crore mark.
Shares of Jubilant Pharmova ended 1.75 percent lower at Rs 342.

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