In an interaction with Lakshay Kataria, CFO, J B Chemicals & Pharmaceuticals Ltd

In India, our big brands showcased sustained growth and got bigger supported by our new go-to-market model, and whilst doing so we also upped our focus on the new product; emphasizes Lakshay Kataria, Chief Financial Officer, J B Chemicals & Pharmaceuticals Ltd

 JB Pharma recorded a healthy YoY growth of 19 per cent in consolidated revenue for FY22. What factors have contributed to your splendid growth?

 Sustained growth at JB Pharma has been possible because of the continued focus on core therapy areas and hence we continue to be one of the fastest growing companies in FY22. By the financial year end, we were ranked 25th among the pharmaceutical companies in India and are currently ranked 23rd on the list. The new management targets to have the company ranked in the top 20 pharmaceutical companies in India. Five of JB Pharma’s brands are ranked among the top 300. In India, our big brands showcased sustained growth and got bigger supported by our new go-to-market model and whilst doing so we also upped our focus on the new product. 

The international business recorded robust revenue growth in FY22 and 28 per cent growth for Q1 FY23 with most segments seeing growth. The CMO revenue crossed Rs 100 crore for the first time in a quarter due to a strong surge on account of demand for lozenges and liquids from key partners.

 The company has witnessed robust order inflows over the last few months. Can you share your outlook on the overall order book and execution? 

Overall, the order book continues to remain robust for our international business. H1 also sees better seasonality in our CMO business which contributed to the order book. Our supply chain and manufacturing teams are focused on relentless execution day after day to deliver steady growth in the international business in these challenging times of supply chain disruption.

 JB Pharma recently acquired 4 brands in the paediatric segment from Dr Reddy’s Laboratories for Rs 98 crore. Can you highlight the beneficial synergies of these brands in the coming years?

This was the right time to capitalize on the opportunity and expand into the paediatric segment because all four brands enjoy a strong presence in their respective spaces. This acquisition is in sync with our strategic blueprint and will strengthen our already established presence in the paediatric category, which is synergistic to our current portfolio. It will also help us significantly leverage our on-the-ground field force strength and widen our offerings in the paediatric basket (comprising of gut health and respiratory infection products).

What are some of the biggest challenges you are currently facing? Do headwinds such as geopolitical crisis, supply chain disruptions, and higher freight costs persist in the international markets you operate in?

We live in a true VUCA world now, where the global marketplace displayed volatility, uncertainty, complexity, and ambiguity, but despite this, JB Pharma continues on its designed growth trajectory. Steering a high-growth business like ours through these uncertain times is a critical task, and whilst manoeuvring the near-term challenges, continuing to work with our business teams on future business models and therapies is of paramount importance. Overall material cost continues to remain challenging whilst softening was seen in certain packing material costs. The fuel and freight costs remain elevated with some softening seen in international freight.

What skill set is required to be the CFO of a leading Indian pharma company? Can you tell us about a challenge that you successfully faced while leading the company?

The role of the CFO has grown from a pure finance technical domain to a strategic leadership role closely involved in organizational change. Some of the challenges faced by most CFOs is the ability to straddle between an operating hat and a strategic hat. Today, a CFO is expected to be a steward of future value growth creation in the strategic journey of the organisation as well as build end-to-end execution enablers for transformative cultures, all this while keeping the finger firm on the pulse of the organization and business. 

The current times have required CFOs to step out of their comfort zone, challenging the status quo and at the same time build continually on the technical expertise within the organization. The biggest enabler for being a successful CFO is to build a strong finance team that is specialized and can support business growth. Finance in an organization has to develop & looked upon more as a strategic function.