Conference Call with J B Chemicals & Pharmaceuticals Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.
J B Chemicals & Pharmaceuticals announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: JB Pharma recorded revenue growth of 13% to Rs 862 crore Domestic business revenue grew 22% to Rs 465 crore Excluding recently added ophthalmology portfolio, organic growth for domestic business was 13% International business revenue grew 4% to Rs 397 crore Excluding South Africa business, International formulations business registered YoY growth of 15% For the first time ever in any fourth quarter, CDMO business crossed Rs 100 crore revenue Operating EBITDA registered YoY growth of 16% to Rs 210 crore; Operating EBITDA margins were at 24.4% (YoY improvement of 60 bps) Gross Profit improved by 15% to Rs 561 crore Gross Profit margins witnessed YoY improvement of 130 bps, reaching 65.2% Other Expenses increased to Rs 211 crore vs Rs 188 crore primarily due to high freight costs on account of the international business Depreciation increased to Rs 41 crore as compared to Rs 32 crore primarily on account of amortization of the ophthalmology distribution and promotion license fees Finance cost reduced to Rs 9 crore vs Rs 14 crore on account of debt repayment during the quarter Other income surged to Rs 17 crore vs Rs 5 crore in Q4FY23 primarily due to fair value income of certain investments PAT improved to Rs 126 crore in Q4FY24, recording YoY growth of 43% FY24 Financial Highlights: Total revenue for the organization grew 11% to Rs 3,484 crore Excluding South Africa business and recently added ophthalmology portfolio, revenue registered YoY growth of 13% Domestic business revenue registered growth of 16% to Rs 1,897 crore Excluding ophthalmology portfolio, domestic business grew 13% Acute season remained weak throughout the year and impacted overall growth International business grew 5% to Rs 1,587 crore Overall revenue growth impacted by strategic choices made in international business especially South Africa Excluding South Africa business, International business revenue registered YoY growth of 12% Operating EBITDA was Rs 939 crore vs Rs 765 crore (YoY growth of 23%); Operating margins improved by 270 bps to 27% Gross Margin witnessed improvement of 320 bps to 66.1% as compared to 62.9 % Gross Profit reported was Rs 2,302 crore vs Rs 1,981 crore, an increase of 16% Cost optimization efforts and a favorable product mix were the primary factors which enhanced margins Non-cash ESOP costs reduced to Rs 42 crore from Rs 69 crore ESOP costs as a percentage to Reported EBITDA reduced to 6% from 10% Other Expenses as a percentage to sales witnessed YoY improvement of 50 bps to 23.1% in FY24. This is despite freight costs escalating due to ongoing geopolitical issues Depreciation increased to Rs 138 crore from Rs 114 crore on account of amortization of acquired brands Other Income increased to Rs 37 crore as compared to Rs 10 crore on account of increased investments and fair value income of certain investments Effective tax rate for the year was 26.4% as compared to 26.1% Net Profit increased 35% to Rs 553 crore Operating cash flows in FY24 was Rs 801 crore vs Rs 626 crore in FY23 Operating cash flows to operating EBITDA improved to 85% in FY24 vs 82% in FY23 ROCE improved to 27% vs 21% in FY23 on the back of strong growth in profitability Gross Debt reduced to Rs 357 crore as on 31st Mar 2024 from Rs 548 crore as on 31st Mar 2023 Cash and Cash equivalents (including investments in mutual funds) were at Rs 464 crore as on 31st Mar 2024 up from Rs 282 crore as on 31st Mar 2023 JB Pharma now a cash positive company with a net cash position of Rs 107 crore as on 31st Mar 2024 Net Working Capital was 87 days in FY24 vs 89 days in FY23 Net Capex additions for the year was Rs 135 crore chiefly on account of expansion of the lozenges manufacturing facility in Daman Commenting on the financial results, Nikhil Chopra, CEO and Wholetime Director, JB Pharma mentioned, “JB Pharma continued its momentum in the quarter with market beating growth in domestic business. With strong focus on our leading brands, we continue to drive higher than market volume growth and gain share in our core therapeutic areas. The Ophthalmology portfolio has seen smooth transition in Jan’24 and the business has started to gain momentum. The International business excluding South Africa recorded double-digit growth. The focus on improving business mix and cost management strategies has helped international business improve overall operating margins despite increase in freight costs on account of geo-political issues. With continued thrust on Domestic and CDMO businesses, we feel confident that the company will continue to deliver sustained revenue growth and improved operating margins in the medium to long term.” Result PDF