J B Chemicals and Pharmaceuticals has reported strong financial results for the first quarter, demonstrating robust growth across key metrics and setting new benchmarks in profitability.

Revenue Growth and Financial Highlights

The company delivered quarterly revenues of INR 1,094.00 crore, marking a 9% year-on-year growth. The domestic business, which constitutes 62% of the total revenue, grew by an impressive 14% to INR 678.00 crore. International operations, accounting for the remaining 38%, increased by 2% to INR 416.00 crore.

J.B. Chemicals achieved record operating EBITDA margins of 30.2%, up 120 basis points year-on-year. The operating EBITDA (excluding ESOP and one-off charges) rose 13% to INR 330.00 crore. Gross margins expanded significantly to 68.3% from 66.2% in the previous year, reflecting the company's focus on cost optimization and favorable business mix.

Net profit for the quarter grew by 14% to INR 202.00 crore, underscoring the company's ability to translate top-line growth into bottom-line results.

Domestic Business Performance

The domestic business outperformed the industry, growing at 13% compared to the industry's 9% growth, as per IQVIA data. The chronic portfolio continued its strong performance with a 15% year-on-year growth, while the acute business increased by 12%.

Key brand performances were particularly noteworthy:

• The Sporlac franchise reached INR 146.00 crore, more than doubling from INR 70.00 crore in June 2022.
• Azmarda, a key brand in the heart failure segment, is now a INR 75.00 crore brand.
• The Razel franchise crossed the INR 100.00 crore mark, up from INR 69.00 crore in June 2023.
• The ophthalmology portfolio delivered a robust 19% year-on-year growth.

International Business and CDMO Segment

The international business saw modest growth, primarily driven by the CDMO (Contract Development and Manufacturing Organization) segment. The CDMO business grew by 8% year-on-year to INR 115.00 crore, with new product launches in Asia Pacific and EU markets.

Strategic Developments

In a significant development, Torrent Pharma announced plans to acquire a controlling stake in J.B. Chemicals for INR 11,917.00 crore, to be followed by a merger. The transaction, subject to regulatory approvals, includes a tender offer at INR 1,639.18 per share.

Management Commentary

Nikhil Chopra, CEO and Whole-Time Director of J.B. Chemicals, commented on the results: "J.B.'s operating momentum continues to impress. The business is amongst the fastest growing in India within the Indian pharma market. We remain focused on driving top-line momentum, cost optimization, and organizational efficiencies."

Future Outlook

The company maintains a positive outlook, expecting continued growth in its domestic and CDMO businesses. Management has guided for CDMO growth between 12% to 14% for the year, with an average run rate of INR 120.00 crore in the first half, increasing to INR 130.00 crore in the second half.

J.B. Chemicals' strong performance demonstrates its resilience and growth potential in a competitive pharmaceutical market. With its focus on key brands, expansion in chronic and international CDMO segments, and strategic initiatives, the company appears well-positioned for sustained growth in the coming quarters.

J B Chemicals and Pharmaceuticals , one of India's fastest-growing pharmaceutical companies, has announced strong financial results for the first quarter. The company's performance was marked by significant growth in its domestic business and improved profitability.

Financial Highlights

JB Pharma reported consolidated revenue of ₹1,094.00 crores, representing a 9% increase from ₹1,004.00 crores in the same quarter last year. The company's domestic formulations business was the star performer, recording a 14% year-on-year growth to reach ₹678.00 crores.

Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a substantial increase of 13%, rising to ₹330.00 crores from ₹292.00 crores in the previous year. Notably, the Operating EBITDA margin improved to 30.2%, up from 29.0% in the previous year.

Net profit for the quarter stood at ₹202.00 crores, showing a healthy 14% growth compared to ₹177.00 crores in the same period last year.

Domestic Business Performance

JB Pharma continued to outperform in the Indian Pharmaceutical Market (IPM). According to IQVIA data for MAT June, JB Pharma was the fastest-growing company among the top 25 pharmaceutical companies in India, with a growth rate of 13% compared to the IPM growth of 8%.

The company's domestic business growth was driven by strong performance in both acute and chronic segments, including its ophthalmology portfolio. The chronic portfolio registered a growth of 15%, while the acute portfolio saw a 12% year-on-year increase.

International Business and CDMO

The international business recorded a marginal 2% growth, reaching ₹416.00 crores. While the overall international formulations business saw a slight decline, the Contract Development and Manufacturing Organization (CDMO) segment registered an 8% growth, reaching ₹115.00 crores.

Key Product Performances

Several of JB Pharma's key brands showed strong growth:

• The Razel franchise crossed the ₹100.00 crore mark in MAT June, up from ₹69.00 crores two years prior.
• Azmarda sales reached ₹75.00 crores in MAT June, compared to ₹69.00 crores in the previous year.
• The ophthalmology portfolio demonstrated impressive growth of 19%, reaching ₹57.00 crores.

Management Commentary

Nikhil Chopra, CEO and Whole-time Director of JB Pharma, commented on the results: "JB continues to be the fastest growing domestic pharma company amongst top 25 organizations as per IQVIA MAT Jun data. The domestic business recorded approx. 14% value growth. This was driven by acute and chronic segments, including our ophthalmology portfolio. Our major brands & their franchises are also performing well. The CDMO business momentum is likely to sustain in coming quarters."

He added, "Our Operating EBITDA margins crossed 30% for the first time, which highlights the results of our strategy of focusing on profitable growth. Going forward, we will maintain focus on driving topline growth, cost optimization and organizational efficiencies."

Future Outlook

JB Pharma's management expressed confidence in the company's future performance, with expectations of continued growth in both domestic and CDMO segments. The company's focus on chronic care, ophthalmology, and CDMO opportunities is expected to drive sustainable growth in the coming years.

Corporate Development

In a significant development, JB Pharma announced on June 29 that it has entered into a share purchase agreement with Torrent Pharmaceuticals Limited. Under this agreement, Torrent will acquire a substantial stake in JB Pharma, subject to regulatory approvals. Additionally, the boards of both companies have approved a scheme of amalgamation, which will see JB Pharma merged into Torrent Pharmaceuticals upon receipt of necessary approvals.

JB Pharma's strong quarterly results, coupled with its strategic initiatives and potential merger, position the company for continued growth and success in the pharmaceutical industry.