The Hindu Business Line : Jubilant Organosys Q1 net zooms to Rs 143 cr

The company has attributed the growth in business to growth in the pharma and life sciences products & services (PLSPS) segment and in international markets.

Revenues in this segment grew by 51.1 per cent to Rs 311.3 crore (Rs 206 crore).

This includes one month’s sales from Hollister-Stier Laboratories, the US company whose acquisition Jubilant completed on June 1.

It also includes other income of Rs 87.9 crore as exchange gain on foreign currency loans including FCCBs. International sales, which accounted for more than half of the company’s net sales, grew by 57.9 per cent to Rs 278.9 crore (Rs 176.6 crore).

Revenue growth in the industrial and performance products segment remained at 11.5 per cent.

“We will continue to look at organic and inorganic growth opportunities in contract research and manufacturing services (CRAMS) and speciality pharmaceutical areas as and when they come up in the market,” said Mr R. Sankaraiah, Executive Director (Finance).

The company is also in talks with originator companies for tie-ups in the drug discovery services area, he added.

It already has a five-year agreement with Eli Lilly.

On a standalone basis, the company’s net profit grew 191 per cent during the first quarter to Rs 138.4 crore (Rs 47.4 crore).

Net sales grew 26.8 per cent to Rs 454.9 crore (Rs 358.7 crore).

The company expects to have a consolidated revenue growth of more than 35 per cent in the current fiscal, driven by the PLSPS business, high growth in CRAMS and the addition of Hollister’s contract manufacturing of sterile injectibles and allergenic extracts business.

According to Mr Shyam S. Bhartia, Chairman, and Mr Hari S. Bhartia, co-Chairman, the company’s strategy of going to market as a full-suite, integrated outsourcing partner is paying richly, at a time when global pharma is increasingly looking eastward to meet production and research needs.

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