Announcements

  • 31 Jan 20

    Q3 & 9M’FY20 Results

Revenue at Rs. 2,315 Crore lower by 3% YoY; EBITDA at Rs 513 Crore lower by 2% YoY and higher by 7% QoQ

The Board of Jubilant Life Sciences Limited, an integrated global pharmaceutical and life sciences company met today to approve financial results for the quarter ended December 31, 2019.

Commenting on the Company’s performance, Mr. Shyam S Bhartia, Chairman and Mr. Hari S Bhartia, Co-Chairman & Managing Director, Jubilant

“We reported stable performance YoY and growth in EBITDA with better margins sequentially and PAT was lower due to certain exceptional charges. Demand conditions across all Pharma businesses, Specialty Intermediates and Nutritional Products are strong. Overall we are confident of delivering strong performance going forward.

Pharmaceutical segment reported steady revenue growth during the quarter. We witnessed healthy growth in Allergy Therapy Products and API businesses with stable performance in Radiopharma, CMO and Generics. EBITDA at Rs 411 Crore was up 6% YoY and 7% QoQ with margin of 28.4%, an

LSI segment revenue at Rs 797 Crore was lower 11% YoY but up 6% QoQ led by growth in Specialty Intermediates and Nutritional Products. Life Science Chemicals business’ revenue at Rs 381 Crore was down 30% YoY due to lower input prices of Acetic Acid. LSI EBITDA at Rs 100 Crore was down 21% YoY but up 10% sequentially with margins of 12.6%.

The Drug Discovery Services business reported robust growth of 26% YoY in revenue and a ~2.7x increase in EBITDA with margin of 25% during the quarter. In view of the strong demand, we are making significant investments in this business to double capacities over the next 2-3 years.

In our Proprietary Drug Discovery business we are working on more than six programs targeting small molecule therapies in the area of oncology and auto-immune disorders with potential to fast track promising assets from discovery to clinical stage.”

Q3’FY20 Highlights

Consolidated

  • Revenue at Rs 2,315 Crore, a decrease of 3% YoY and an increase of 2% QoQ
  • EBITDA at Rs 513 Crore decreased 2% YoY but increased 7% sequentially. EBITDA margin at 22.2% vs. 22% in Q3’FY19 and 21.2% in Q2’FY20
  • Adjusted EBITDA after one-off expenses at Rs 516 Crore vs. Rs 518 Crore in Q3’FY19. Adjusted EBITDA margin for the quarter is 22.3% vs. 21.8% in Q3’FY19
  • Finance costs at Rs 72 Crore vs. Rs 53 Crore in Q3’FY19 and Rs 72 Crore in Q2’FY20
  • Exceptional charge of Rs 23 Crore related to prepayment of high yield bonds and NCDs and Rs 11 Crore related to write-off of fixed assets not in use. Q3’FY19 charge of 15 Crore is related to IFC Stock settlement charge
  • PAT at Rs 203 Crore down 22% YoY and 18% QoQ. EPS of Rs 12.8 for Re 1 FV
  • Capital Expenditure of Rs. 111 Crore
  • Gross Debt at Rs. 4,048 Crore and Net debt at Rs. 3,362 Crore
    • Net debt at Rs. 3,273 Crore on a constant currency basis
    • Average blended interest rate for 9M’FY20 @ 6.08%; INR loans @ 8.21% and USD loans @ 5.34%

Segment Wise Analysis

A. Pharmaceuticals Segment
  • Pharmaceuticals revenue at Rs 1,450 Crore, an increase of 2% YoY, contributing 63% to the company’s revenue as compared to 60% in Q3’FY19
  • EBITDA at Rs 411 Crore increased by 6% YoY and 7% QoQ with a margin of 28.4% as compared to 27.2% in Q3’FY19 and 26.6% in Q2’FY20.
  • Adjusted EBITDA at Rs 414 Crore increased by 8% YoY with a margin of 28.6% as compared to 26.9% in Q3’FY19
  • R&D spent during the quarter of Rs. 72 Crore – 5% of segment’s sales. R&D debited to P&L is Rs. 55 Crore – 3.8% of segment’s sales

B. Life Science Ingredients Segment

  • LSI revenue at Rs 797 Crore, decreased by 11% YoY and increased by 6% QoQ, contributing 34% to the company’s revenues
  • EBITDA at Rs 100 Crore decreased by 21% YoY and increased by 10% QoQ with margin of 12.6% as compared to 14% in Q3’FY19

C. Drug Discovery & Development Solutions1 Segment

  • Revenue increased by 26% YoY to Rs 68 Crore led by growth in Drug Discovery Services business
  • EBITDA at Rs 17 Crore with margin of 25.4%
    • Drug Discovery Services EBITDA increased to Rs 21 Crore from Rs 5 Crore in Q3’FY19. Margin improvement to 31.1% from 8.6% in Q3’FY19 1. Drug Discovery & Development Solutions include the Drug Discovery Services (Jubilant Biosys & Jubilant Chemsys) business and Proprietary Drug Discovery business (Jubilant Therapeutics)

9M’FY20 Highlights

Consolidated

  • Revenue at Rs 6,763 Crore, increase of 1% from Rs 6,725 Crore in 9M’FY19
  • EBITDA flat at Rs 1,438 Crore as compared to Rs 1,423 Crore in 9M’FY19. EBITDA margin at 21.3% against 21.2% in 9M’FY19
  • Adjusted EBITDA after one-off expenses at Rs 1,512 Crore vs. Rs 1,432 Crore in 9M’FY19, growth of 6% YoY. Adjusted EBITDA margin in 9M was 22.4% vs. 21.3% in 9M’FY19
  • Finance costs at Rs 216 Crore as compared to Rs 158 Crore in 9M’FY19.
  • Exceptional charge of Rs 23 Crore related to prepayment of high yield bonds and NCDs and Rs 11 Crore related to write-off of fixed assets not in use. 9M’FY19 charge of 45 Crore is related to IFC Stock settlement charge
  • Net Profit at Rs 638 Crore down 5% YoY. EPS of Rs 40.0 for Re 1 FV
  • Capital Expenditure of Rs. 428 Crore

Segment Wise Analysis

D. Pharmaceuticals Segment

  • Revenue at Rs 4,231 Crore, increased 7% YoY
  • EBITDA at Rs 1,127 Crore up 4% YoY with a margin of 26.6% as compared to 27.6% in 9M’FY19
  • Adjusted EBITDA at Rs 1,192 Crore increased 9% YoY with a margin of 28.2% as compared to 27.8% in 9M’FY19. One-off expenses of Rs 65 Crore related to related to site remediation, litigation expenses and penalties on non-supply
  • R&D spent during 9M at Rs. 186 Crore – 4.4% to segment sales. R&D debited to P&L is Rs. 157 Crore – 3.7% to segment sales

E. Life Science Ingredients Segment

  • LSI revenue at Rs 2,356 Crore, decrease of 11% YoY
  • EBITDA at Rs 313 Crore decreased by 9% YoY with margin of 13.3% as compared to 13.1% in 9M’FY19.
  • Adjusted EBITDA at Rs 321 Crore, with a margin of 13.6% as compared to 13.1% in 9M’FY19

F. Drug Discovery & Development Solutions Segment

  • Revenue increased 18% YoY to Rs 176 Crore
  • EBITDA at Rs 39 Crore a YoY increase of 108%
    • Drug Discovery Services EBITDA increased to Rs 50 Crore up 168% YoY. Margin improvement to 28.3% from 12.5% in 9M’FY19

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