JB Chemicals & Pharmaceuticals announces Q2FY21 results; stock opens 2.1 per cent lower

JB Chemicals & Pharmaceuticals Ltd (JBCL) announced its Q2FY21 results on Tuesday after the market hours.

The company’s domestic formulations & international businesses have maintained positive momentum. The company’s export order book remains healthy as of September 20 order book growth of 39 per cent over September 19. Its domestic formulations business continues to outpace IPM growth rates, driven by sales performance in chronic therapies.

A slowdown in demand in the acute segment due to the COVID-19 related lockdowns are now gradually reverting to regular levels. As a result, its EBITDA performance continues to be encouraging. EBITDA grew by 10 per cent in Q2FY21 despite deferment of export orders of Rs 57 crore.

The company saw a relatively better gross margin profile and continued control on operating expenditure (including A&P and admin expenses) which resulted in an EBITDA margin expansion of 290 basis points YoY. Meanwhile, profit after tax (PAT) during Q2FY21 was impacted due to the significant variance in the effective tax rate (ETR) on a YoY basis.

The company further stated in its presentation that certain semi-regulated markets in Latin America, Africa, and Southeast Asia are showing healthy growth. It saw good order flows from major contract manufacturing and API customers.

Recently, KKR had completed the acquisition of a 54 per cent stake in JBCPL from the founding promoters of the company, funded from KKR’s Asian Fund III, a USD 9.3 billion fund focussed on investments in private equity transactions across the Asia Pacific region.