Hope to maintain margins at 15 per cent: JB Chemicals
29 July 2006
Pranabh Mody, president and whole-time director, JB Chemicals, talks about the company's performance
JB Chemicals, one of the leading mid-size pharma companies in the country, has reported first quarter results, which show modest growth in both top line and bottom line. The company has seen growth rates slowing down from the very high rates achieved during the previous year, mostly on account of slower growth in the domestic formulations business.
For the quarter ended 30 June, 2006, JB Chemicals has reported a net profit of Rs13.01 crore - an increase of 10.11 per cent over the previous year quarter. Total revenues were higher by 8.53 per cent at Rs106.19 crore as against Rs97.84 crore for the prior year quarter.
Operating profits went up very marginally by 2.45 per cent over the previous year quarter while operating margins, excluding other income, as a percentage of net sales declined to 14.84 per cent from 15.5 per cent for the prior year quarter.
For the last financial year 2005-06, JB Chemicals had reported a 46.14 per cent rise in net profits to Rs70.93 crore on a 58.38 per cent rise in total revenues to Rs477.55 crore. With a total of eleven manufacturing units — including 3 US FDA certified units — and two R&D centres, J B Chemicals is planning to enter new segments including anti-diabetics and respiratory drugs. Among its brand portfolio metronidazole under the Metrogyl brand, ranitidine under the brand Rantac, a cardiac segment drug Nicardia, and an over the counter herbal tonic, Doktor Mom.
The company places considerable focus on overseas sales and more than half of its revenues are from exports.
Pranabh Mody, president and whole-time director, J B Chemicals, says business has grown by 20 per cent in countries like Russia and the CIS.