Jubilant Life Sciences – Q1’FY20 Results

Revenue at Rs. 2,182 Crore up 5% YoY; EBITDA at Rs 444 Crores down 1% YoY

PAT at Rs 185 Crore down 9% YoY with EPS of Rs. 11.6 per share vs Rs 13.0 per share last year

New Delhi, July 27, 2019: 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 June 30, 2019.

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

“We have had a steady performance during the quarter. Pharmaceutical segment revenues have been higher by 12% YoY led by growth in CMO, Radiopharma and Allergy Therapy Products businesses. Pharma segment EBITDA was 3% lower YoY with higher profitability in CMO, Allergy and Generic businesses offset by lower API volumes and one-off expenses. Adjusted for the one-off expenses, Pharma EBITDA was higher YoY.

In Life Science Ingredients segment, revenues have been 5% YoY lower mainly due to decline in input prices that affected selling prices in the Life Science Chemicals business. Profitability improved due to volume and value increase in Specialty Intermediates and Nutritional Product businesses.

Demand conditions for our businesses remain robust in key segments and we expect to deliver sustainable growth, going forward.”

Corporate Announcement

Evaluation of options to create focused entities for JLL businesses

The board of directors of the Company (“Board”) considered the option of reorganizing its businesses with the following objectives:

(a) create separate and focused entities for Pharmaceuticals and Life Science Ingredients businesses to manage different risks, rewards and regulatory requirements;

(b) enable strategic growth for these businesses with optimal capital structure;

The Board has constituted a Committee to evaluate various options including reorganization / demerger of business undertakings on a going concern basis and provide its recommendations. Any decision in this regard will be after due evaluation and consideration by the Board and be subject to all necessary consents and approvals.

The Company will take necessary steps to comply with all applicable laws and regulations including the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Q1’FY20 Highlights

Consolidated

Consolidated revenue at Rs 2,182 Crore up 5% YoY
EBITDA at Rs 444 Crore down by 1% YoY with margin of 20.4%.
Adjusted EBITDA, after adjusting for one-off expenses of Rs 48 Crore, at Rs 493 Crore up 9% YoY with margin of 22.6%
Finance costs at Rs. 73 Crore in line with Q1 last year
PAT at Rs. 185 Crore down 9% YoY with EPS at Rs. 11.6 for Re. 1 FV vs. Rs 13.0 in Q1 last year
Capital Expenditure of Rs. 169 Crore
Gross Debt at Rs. 4,602 Crore and Net debt at Rs. 3,286 Crore
- Net debt at Rs. 3,293 Crore on a constant currency basis
- Average blended interest rate for Q1’FY20 at 6.11% pa – Re loans @ 8.38%, $ loans @ 5.33%

Segment Wise Analysis

A. Pharmaceuticals Segment

Pharmaceuticals segment’s revenue up 12% YoY in Q1’FY20 to Rs. 1,321 Crore contributing 61% to the company’s revenue as compared to 57% in Q1’FY19
EBITDA of Rs. 331 Crore vs. Rs 342 Crore in Q1’FY19 with margin of 25.1% vs 28.9% in Q1FY19
Adjusted EBITDA, after adjusting for one-off expenses of Rs 40 Crore, at Rs 371 Crore up 7% YoY with margin of 28.1%
R&D spent during the quarter of Rs. 57 Crore – 4.3% to segment sales. R&D debited to P&L is Rs. 48 Crore – 3.7% to segment sales

B. Life Science Ingredients Segment

LSI revenue at Rs. 805 Crore, down 5% YoY, contributing 37% to the company’s revenues
EBITDA at Rs 122 Crore up 11% YoY with a margin of 15.1% vs. 12.9% in Q1FY19
Adjusted EBITDA, after adjusting for one-off expenses of Rs 9 Crore, at Rs 130 Crore up 19% YoY with margin of 16.2%