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J B Chemicals and Pharmaceuticals, a Rs. 3,000 crore plus pharma major, announced that during the fourth quarter ended March 2023 its sales increased by 22 per cent to Rs. 762 crore from Rs. 624 crore. However, its consolidated net profit declined by 7.4 per cent to Rs. 88 crore from Rs. 95 crore in the corresponding period of last year. The company declared equity dividend of Rs. 9.25 per share for the year 2022-23. The company is planning to sub-divide its face value of share from Rs. 2 to Re 1.
New products contributed 5.3 per cent to domestic sales for the fourth quarter. Azmarda emerged among the top 300 brands in IPM as per IQVIA MAT March 2023 data. The company reduced prices by 50 per cent in Azmarda during December 2022. Post exclusivity, a number of players launched Sacubitril-Valsartan in the market. Current geo-political and economic uncertainty continues to impact demand. Cost Inflationary environment persists across all markets. Logistics and freight costs relatively softened towards the end of the financial year.
Commenting on financial results, Nikhil Chopra, CEO and wholetime director, mentioned, “JB continued its growth journey in the fourth quarter, thereby ending FY23 with strong performance across business segments. Our market-beating performance in India is pivoted around big brands becoming bigger, and significant demand acceleration in the acquired portfolio. Each of our top 5 brands have ascended through the ranks. Further, Azmarda entered IQVIA’s Top 300 brands list and other acquired business in probiotics and paediatric segment have witnessed rank and market share gain.”
He added, “Our performance in the International business has seen commendable gains amidst a challenging business environment. International formulations clocked mid-teens growth for the quarter. We continue to witness increased interest from existing and new clients in the CMO business especially in the lozenges segment. We expect to build on this growth in the long term by expanding our pipeline for international business. While we are cautious of the inflationary environment our efforts are aimed at executing well, with productivity and cost optimization as drivers, in order to deliver improved operating margins”
For the year ended March 2023, JB’s sales went up sharply by over 50 per cent to Rs. 3,149 crore from Rs. 2,424 crore in the previous year due to higher sales of Azmarda and Razel brands. The company is already beginning to witness good momentum for Razel. Domestic business recorded growth of 38 per cent at Rs. 1,640 crore in FY23 vs Rs. 1,188 crores in FY22. New products contributed 4.7% to domestic sales in FY23. It launched 17 new products despite raw material prices impacted operating margins for the business.
Its international revenues increased by 22 per cent to Rs. 1,509 crore from Rs. 1,236 crore in the previous year. Russia situation impacted demand for the region in the first half. Other BGx markets opened up post-Covid and demand normalcy was restored. CMO business was the stellar performer recording revenue growth of 60 per cent at Rs. 406 crore. Increased demand from existing customers due to the prolonged cough and cold season across the world. Number of new products launched across markets which would gain traction in the coming years.
JB’s consolidated net profit for the year ended March 2023 increased by 6.2 per cent to Rs. 410 crore from Rs. 386 crore in the previous year. EBITDA went up by 26 per cent to Rs. 765 crore from Rs. 605 crore. Borrowings went up to Rs. 548 crore from Rs. 26 crore, which has pushed its interest burden. As against the equity capital of Rs. 15 crore, its reserves & surplus increased to Rs. 2,465 crore from Rs. 2,119 crore in the previous year, a growth of 16.3 per cent.
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