The Hindu Business Line : Forex losses eat into Jubilant’s margins

New Delhi, April 22 Indian pharmaceutical company Jubilant Organosys Ltd on Tuesday reported an 8.8 per cent year-on-year drop in fourth-quarter net profit, primarily due to foreign exchange losses.

Consolidated net profit for the period ended March 31 fell to Rs 58.2 crore from Rs 63.8 crore a year ago. The company recorded a foreign exchange loss of Rs 26.1 crore on its foreign currency borrowings in the fourth quarter, compared with a gain of Rs 45.8 crore in the corresponding period a year ago.

Consolidated net sales for the same period rose to Rs 689 crore (Rs 463 crore), the company said in a statement. Jubilant said it continues to see strong traction across existing businesses and expects revenue in the current financial year to increase by 35 per cent.

The company said the revenue growth projection for the year doesn’t account for the proposed acquisition of Draxis Health Inc. Jubilant agreed to buy Montreal-based Draxis earlier this month for $255 million, and expects the transaction to close by June. The company reported net profit of Rs 400 crore on net sales of Rs 2489 crore in the financial year ended March 31.

Shares of Jubilant closed up about 0.2 per cent at Rs 361.90 on the Bombay Stock Exchange.

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