Jubilant Life Sciences on Monday reported net profit of Rs 44 crore for the third quarter ended December 2010.

The company earned a profit of Rs 100 crore in the corresponding quarter last year but the year-ago numbers are not comparable as the erstwhile Jubilant Organosys demerged its pharmaceutical business into Jubilant Life Sciences while the agri and performance polymers business was spun off into Jubilant Industries.

Net sales of Jubilant Life Sciences was at Rs 867 crore, compared with Rs 865 crore from the same line of business prior to scheme of arrangement, last year same quarter. International business contributed 69 per cent to the top line with revenue from regulated markets at Rs 377crore.

Revenue from Life Science Products at Rs 700 crore contributed 81 per cent to the revenue of the company and grew 13 per cent in the quarter.

In Q3 FY2011, the company's EBITDA was Rs 134 crore with margins at 15.4 per cent driven by 23 per cent EBITDA margins of products business.

Commenting on the company's performance, Mr Shyam S. Bhartia, Chairman and Managing Director said, “Revenue from services business for the quarter is not a true representation of the current environment since there has been a short-term slowdown of order flow from pharmaceutical industry due to consolidation of large pharma companies, stringent regulatory environment delaying new product approvals and de-stocking of vaccines on account of fall in demand.”

The company said that outlook for the longer term remains promising, given the increasing outsourcing of products and services business from global pharmaceutical and agrochemical companies.

“We expect robust growth in the products segment in subsequent periods due to strong order book position, new product launches in generics & APIs and capacity utilisation of proposed expansion to meet the growing demand of the customers in proprietary products & exclusive synthesis and nutrition ingredients,” the company said.

tkt@thehindu.co.in

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