On February 5, 2021 The Board of Jubilant Pharmova Limited reported to approve financial results for the quarter ended December 31st, 2020 (Press release, Jubilant Pharma, FEB 5, 2021, View Source [SID1234575193]).
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Commenting on the Company’s performance, Mr. Shyam S Bhartia, Chairman and Mr. Hari S Bhartia, CoChairman & Managing Director, Jubilant Pharmova said: "Q3’FY21 has witnessed a substantial improvement over the previous quarter despite continued adverse impact of the COVID-19 pandemic.
Pharma business delivered strong performance led by CDMO and Generics. We continue to see new business opportunities in CDMO, Generics and Specialty Pharma segments.
The company’s performance in the LSI business has been better due to good demand and improved pricing of select products.
Contract Research and Development Services business witnessed strong year-on-year growth in revenues led by healthy demand from customers.
We continue to expect strong performance in our businesses in Q4’FY21. During 9M’FY21, the Company reduced net debt on a constant currency basis by Rs 570 Crore. This is in addition to Rs 514 crore reduction in net debt during FY20.
We received the final NCLT order approving the demerger of our LSI business. The demerger is effective from February 1, 2021 and creates separate and focused entities: Jubilant Pharmova for pharmaceuticals, contract research and development services and proprietary novel drugs businesses and Jubilant Ingrevia for life science products and innovative solutions business; that will help in unlocking shareholder value."
Q3’FY21 Highlights
A. Consolidated
Revenue at Rs 2,664 Crore, as compared with Rs 2,315 Crore in Q3’FY20; up 15% YoY
Reported EBITDA at Rs 653 Crore as compared with Rs 513 Crore in Q3’FY20; up 27% YoY. EBITDA margin at 24.5% vs. 22.2% in Q3’FY20
Finance costs at Rs 59 Crore vs. Rs 72 Crore in Q3’FY20
Net Profit at Rs 310 Crore versus Rs 203 Crore in Q3’FY20. EPS of Rs 19.5 vs. Rs 12.8 in Q3’FY20; up 52% YoY
Capital expenditure for the quarter was Rs 104 Crore Jubilant Pharmova Limited 1A, Sector 16A, Noida – 201301, India Tel.: +91 120 4361000 www.jubilantpharmova.com Segment Wise Analysis B. Pharmaceuticals Segment
Pharmaceuticals revenue was at Rs 1,692 Crore vs. Rs 1,450 Crore in Q3’FY20
Pharmaceuticals EBITDA recorded at Rs 499 Crore as compared with Rs 411 Crore in Q3’FY20 with a margin of 29.5% as compared to 28.4% in Q3’FY20
R&D spent during the quarter of Rs 45 Crore – 2.6% to segment sales. R&D debited to P&L is Rs 47 Crore – 2.8% to segment sales
CMO business’ revenue grew based on strong demand from customers as well as new deals
Five separate clinical and commercial supply agreements for COVID-19 treatment and vaccine candidates signed in 9M’FY21. Remdesivir of Gilead approved by the US FDA has been contributing to CMO revenue growth
Started contract manufacturing of Eli Lily’s Bamlanivimab, a drug that has been granted Emergency Use Authorization by the US FDA for treatment of COVID-19 and COVID-19 vaccine candidate NVX-CoV2373 of Novavax, biotechnology company developing next-generation vaccines for serious infectious diseases
Revenue growth during the quarter was also led by strong performance in key products in Generics segment, especially in the US market and also by launch of Remdesivir in various countries including India C. Life Science Ingredients Segment
LSI revenue was at Rs 893 Crore against Rs 797 Crore in Q3’FY20
Strong growth witnessed in Nutrition and Health Solutions and Life Science Chemicals business driven by improved pricing in both the segments
EBITDA at Rs 155 Crore increased by 55% YoY with margin of 17.4% as compared to 12.6% in Q3’FY20
Strong improvement in profitability is driven by improvement in prices across several products as well as recovery in volumes in Nutrition and Life Sciences Chemicals D. Contract Research and Development Services Segment
Revenue at Rs 79 Crore increased by 17% YoY
Reported EBITDA at Rs 29 Crore vs. Rs 22 Crore in Q3’FY20 with a margin of 36.4% vs. 32.9% in Q3’FY20
Higher demand from biotech companies for integrated services, functional chemistry and DMPK
Company continues to witness strong demand conditions in this business 9M’FY21 Highlights E. Consolidated
Consolidated Revenue at Rs 6,932 Crore vs. Rs 6,763 Crore in 9M’FY20
EBITDA at Rs 1,457 Crore vs. Rs 1,438 Crore in 9M’FY20. EBITDA margin at 21.0% vs. 21.3% in 9M’FY20
Finance costs at Rs 199 Crore down 8% YoY
Net Profit at Rs 622 Crore vs. Rs 638 Crore in 9M’FY20. EPS of Rs 39.1 vs. Rs 40.0 in 9M’FY20 Capex of Rs 285 Crore in 9M’FY21
Net debt reduced by Rs 570 Crore during 9M’FY21 Segment Wise Analysis F. Pharmaceuticals Segment
Pharmaceuticals revenue at Rs 4,304 Crore vs. Rs 4,231 Crore in 9M’FY20
EBITDA at Rs 1,020 Crore vs. Rs 1,127 Crore in 9M’FY20. Margin of 23.7% as compared to 26.6% in 9M’FY20 G. Life Science Ingredients Segment
LSI revenue at Rs 2,413 Crore vs Rs 2,356 Crore in 9M’FY20
EBITDA at Rs 418 Crore up 34% YoY with margin of 17.3% as compared to 13.3% in 9M’FY20 H. Contract Research and Development Services Segment
Revenues at Rs 211 Crore up 20% YoY
EBITDA was at Rs 67 Crore up from Rs 52 Crore in 9M’FY20
I. Business Outlook
We continue to see improvement in demand in most of our business segments be it CMO, Generics, API or Life Science Ingredients
Given the strong demand recovery and new business sign-ups, we believe COVID-19 is not likely to have a material impact on our overall performance during FY21, provided the pandemic situation does not materially deteriorate going forward
Overall, we continue to see strong performance in our businesses in Q4’FY21
For Pharmaceutical business, we continue to see strong performance in Q4
For LSI business, we expect to achieve close to double-digit revenue growth and significant growth in EBITDA with higher margin and a very healthy cash generation in FY21