Jubilant Life stock rules weak despite strong earnings

R. Y. Narayanan Updated - March 12, 2018 at 12:00 PM.

Despite posting strong numbers in the first quarter of the current fiscal, Jubilant Life Sciences Ltd (formerly Jubilant Organosys Ltd) shares failed to fire up in the early morning trade, though the Sensex was up.

JLSL, an integrated pharma and custom research and manufacturing services player, recorded a 16 per cent jump y-o-y in income at Rs 948 crore. This was a 6 per cent increase sequentially. The lion’s share of the business was contributed by international business, accounting for Rs 653 crore or 69 per cent of net sales.

The net profit for the first quarter was Rs 77 crore, a 53 per cent growth y-o-y and 25 per cent increase sequentially.

The company said it expected to continue to build on “the robust sustainable revenue and margin growth momentum recorded in the first quarter”. While growth in the products business would be due to commissioning of new capacities and geographic expansion, in services business higher capacity utilisation, better product mix and cost optimisation would bring higher profitability.

The share was trading at Rs 199.85 (face value Re 1), up about 40 paise, on the BSE at 11.45 a.m. today.

Published on August 17, 2011 06:39