India Ratings has affirmed Jubilant Life Sciences Ltd’s national long-term rating at ‘IND A+’. The outlook is Stable.
The affirmation reflects the company’s healthy business risk profile supported by its strong domestic market position in custom research and manufacturing services coupled with its geographically diversified revenue streams.
In FY12 (year-end March), international sales contributed 71 per cent to total revenues. The ratings are underpinned by the company’s presence across the pharmaceutical value chain including Active Pharmaceutical Ingredients, active intermediaries and dosage forms.
Most of the company's products use molasses and alcohol as raw materials, as against petroleum products, which insulate it to some extent from high crude oil prices. However, the company remains exposed to raw material commodity cycles and finished product price fluctuations leading to volatile EBITDA margin, the rating agency has said.