JB Chemicals –
Q1 FY 25 concall and results highlights –
Revenues – 1004 vs 896 cr, up 12 pc
Gross Margins @ 66 vs 65 pc
EBITDA – 280 vs 232 cr, up 20 pc ( margins @ 29 vs 27 pc )
PAT – 177 vs 142 cr, up 24 pc
India formulations registered a strong 22 pc YoY growth to clock revenues of 595 vs 489 cr ( excluding the opthal portfolio, the growth was 13 pc – out of this volume growth was @ 4 pc. Othal portfolio was acquired LY from Novartis )
International business was largely flat at 409 vs 407 cr YoY – however, the order book remains strong for the CDMO business and should show strong growth in H2
Gross Debt as on 30 Jun 24 stood @ 108 cr, down by 250 cr from 358 cr on 31 Mar 24
Cash on Books @ 421 cr
Five of company’s brands are now in top 150 brands in the IPM. These are – Cilacar, Rantac, Metrogyl, Cilacar-T, Nicardia. In addition, Sporolac sales have crossed 100 cr ( annually ) – growing @ 32 pc CAGR over last 3 yrs. Azmarda is also clocking sales run rate of > 70 cr / yr
Company has been deliberately letting go some of their low margin, tender based SA business. The growth in Russia + RoW business is holding up well
Guiding for a full year operating margin guidance of 26-28 pc ( this looks like a conservative guidance since the H2 generally sees good pickup in CMO business – personal opinion )
The Opthal portfolio is likely to clock annualised sales of around 180 cr this FY. Have taken the MR count in the Opthal business up by 50 pc from 70 to 105. Seeing good traction for the acquired Opthal brands
Company continues to evaluate deals ( potential acquisitions ) in the domestic mkt in order to best utilise cash on books
Company expects their Azmarda brand to keep growing in healthy double digits going fwd
Hopeful of sustaining 12-14 pc organic growth in FY 25 in IPM
Hope to clock good growth wef H2 in their Lozenges -CMO business. They make and supply immunity boosting, wellness, melatonin based and pain relief lozenges – and this business is expected to ramp up going fwd
Q2 onwards, international business should also grow in double digits
Since company has a strong presence in Cardio and Probiotics therapies, company generally ends up beating the IPM growth by 200-300 bps as these are fast growing therapies
Disc: holding, biased, not a buy / sell recommendation, not SEBI registered
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