Jubilant Life Sciences reports Rs 53Cr net loss weighed by MTM losses; revenues up 9% in Q1

Jubilant Life Sciences Ltd reported 9 per cent rise in revenues to Rs 1,358 crore for the first quarter, but was hit by mark-to-market (MTM) losses due to the currency movement, which sank its bottom line for the three months ended June 30, 2013. The firm reported consolidated net loss of Rs 53 crore during the quarter as against net profit of Rs 5 crore during Q1 FY13.

The firm said it recorded MTM exchange losses of Rs 95 crore and FCMITDA (foreign currency monetary item translation difference account) amortisation of Rs 25 crore. Normalised (for exceptional losses) net profit for the quarter was Rs 70 crore.

Besides being affected by the MTM losses, the firm also saw deterioration in its operating margins during the quarter. Its EBITDA declined 15 per cent to Rs 237 crore as against Rs 278 crore during Q1 FY13.

Jubilant reported growth in revenues due to sales volume growth of 12 per cent although this was tempered by adverse price impact.

The firm saw 10 per cent rise in sales in international markets even though its key North America market saw mere 4 per cent growth over the year-ago period. Europe and Japan also reported single digit growth, and the international sales growth was driven by China and the rest of the world. Overall, international sales comprise three-fourth of its total revenues.

The firm is backed by General Atlantic, which is sitting on unrealised loss of over 50 per cent on its six-year-old investment in the healthcare firm. The PE firm had invested around Rs 240 crore to buy stake in the company in mid-2005. While it exited its investment in Jubilant Industries, which was demerged from Jubilant Life Sciences (Jubilant Organosys at that time), it is holding on to its shares in the healthcare firm.

Segment break-up

The firm derives a little over half of its business from pharmaceuticals and the rest from life science ingredients.

The company reported meagre 2 per cent growth in revenues from its pharma business, which stood at Rs 651 crore in Q1 FY14 over the year-ago period. Its life sciences ingredients business grew 18 per cent to clock revenues of Rs 706 crore in Q1 FY13, compared to Rs 599 crore in the first quarter of the last financial year.

The growth in pharma business came from the volume growth in APIs and solid dosage formulations business while the growth in life sciences segment was spurred by volume buoyancy in vitamins and acetyl products.

The EBITDA contribution from its pharmaceuticals segment was 59 per cent and from the life sciences segment was 41 per cent.

(Edited by Sanghamitra Mandal)

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