JB Pharma Reports 13% Revenue Growth and 16% PAT Increase in Q2 FY25

Key Takeaways from the Financial Performance

• JB Pharma achieved significant financial growth in Q2 FY25, with revenue reaching INR 1001 crore and PAT increasing by 16% YoY to INR 175 crore. 
• The domestic formulations segment contributed strongly to revenue, while the international business showed resilience amid seasonal trends. 
• Operating margins were maintained through strategic cost controls, improved product mix, and price adjustments. 

Profit after tax (PAT) surged by 16% to INR 175 crore, up from INR 151 crore the previous year. This quarter also marked the second consecutive quarter where JB Pharma achieved revenue exceeding INR 1000 crore.

The domestic formulations segment played a key role in JB Pharma’s revenue growth, generating INR 588 crore, up by 22% YoY from INR 481 crore in Q2 FY24. Except for the ophthalmology portfolio, the domestic business recorded a growth rate of 12%. 

The international business contributed INR 413 crore, a modest 3% increase compared to INR 401 crore in the same period last year. While the international formulations business showed a strong recovery, the contract development and manufacturing organisation (CDMO) segment experienced seasonal effects but is expected to recover significantly in the second half of the fiscal year.

Operating EBITDA grew by 13% to INR 285 crore, maintaining a stable margin of 28.4%. The gross margin for Q2 FY25 remained at 66.2%, consistent with last year’s figures. When excluding the ophthalmology portfolio, which currently has limited margins, JB Pharma’s gross margin saw an improvement of over 150 basis points YoY. This was achieved through cost optimisation efforts, a favourable product mix, and price increases. 

Overheads, including employee expenses, were tightly controlled, aiding the company’s operational margins despite higher freight costs in the international market. Depreciation remained steady at INR 42 crore, and finance costs were notably reduced to INR 2 crore from INR 10 crore due to a decrease in gross debt. As of September 30, 2024, JB Pharma’s gross debt stood at INR 82 crore.

Speaking on the financial performance, Mr Nikhil Chopra, CEO and Wholetime Director, JB Pharma, said, “We maintained a healthy pace of growth in Q2, achieving Rs. 1,000 crore revenue for the quarter. EBITDA margins at 28% are at the higher end of our guidance range, given a favourable product mix and cost optimization initiatives. JB’s domestic business continued to out-perform the market with all our major brands posting strong growth. We have steadily driven strong volume growth for our large brands, including the acquired portfolios. On the international front, our formulations business performed well in Q2 and CDMO division growth will pick up in H2 as we come out of a seasonally muted Q2. JB has consistently delivered strong revenue and margin growth. We are confident of maintaining this positive traction towards our operating and strategic goals for both this year and beyond. As we chart our future, we remain focused on making the organisation progressive and future-ready.”

About J.B. Chemicals & Pharmaceuticals Limited

Founded in 1976, JB Pharma is one of India's fastest-growing pharmaceutical companies and a leader in the hypertension segment. With a robust presence in India, Russia, and South Africa, JB Pharma generates most of its revenue domestically, where it has six brands among the top 300 in the Indian pharmaceutical market. The company exports branded generic formulations to over 40 countries, including the USA, and is a global leader in medicated and herbal lozenges, ranking among the top five manufacturers worldwide. JB Pharma operates eight advanced manufacturing facilities in India, with certifications from prominent global regulatory authorities, including a dedicated facility for lozenges.

Key Takeaways from the Order Win

• Shakti Pumps (India) Limited has received a significant work order from the Haryana Renewable Energy Department (HAREDA) to supply, install, and commission 3,174 solar water pumping systems under Component B of the PM-KUSUM scheme. 
• This domestic order does not involve any related party transactions, and there is no promoter interest in HAREDA. 
• The project aligns with Shakti Pumps’ mission to support sustainable energy initiatives within India’s agricultural sector.

This order is for the supply, installation, and commissioning of 3,174 solar water pumping systems. The contract's total value is Rs. 102.25 crore, exclusive of GST, and inclusive of GST, it totals Rs. 116.36 crore. Shakti Pumps is expected to fulfil this work order within 120 days from the issuance date.

The contract offered by HAREDA, an Indian entity, is a related party transaction, and neither the promoter group nor group companies have a vested interest in HAREDA. Again, massive order gives emphasis to the commitment of Shakti Pumps towards the expansion of renewable energy solutions in India, especially the ones in the agricultural sector under the scheme initiated by the government, PM-KUSUM to promote sustainable energy usage.

About Shakti Pumps (India) Limited

Shakti Pumps (India) Ltd. manufactures pumps and motors and specialises in sophisticated pumps for the requirement of pumping water for a variety of purposes that include irrigation, horticulture, and potable water supply, as well as for commercial and industrial applications.

Key Takeaways from the Order Win

• Shakti Pumps (India) Limited has received a significant work order from the Haryana Renewable Energy Department (HAREDA) to supply, install, and commission 3,174 solar water pumping systems under Component B of the PM-KUSUM scheme. 
• This domestic order does not involve any related party transactions, and there is no promoter interest in HAREDA. 
• The project aligns with Shakti Pumps’ mission to support sustainable energy initiatives within India’s agricultural sector.

This order is for the supply, installation, and commissioning of 3,174 solar water pumping systems. The contract's total value is Rs. 102.25 crore, exclusive of GST, and inclusive of GST, it totals Rs. 116.36 crore. Shakti Pumps is expected to fulfil this work order within 120 days from the issuance date.

The contract offered by HAREDA, an Indian entity, is a related party transaction, and neither the promoter group nor group companies have a vested interest in HAREDA. Again, massive order gives emphasis to the commitment of Shakti Pumps towards the expansion of renewable energy solutions in India, especially the ones in the agricultural sector under the scheme initiated by the government, PM-KUSUM to promote sustainable energy usage.

About Shakti Pumps (India) Limited

Shakti Pumps (India) Ltd. manufactures pumps and motors and specialises in sophisticated pumps for the requirement of pumping water for a variety of purposes that include irrigation, horticulture, and potable water supply, as well as for commercial and industrial applications.

Key Takeaways from the Announcement

• KIMS to acquire 3,000 beds and expand to multiple locations across Kerala within five years.
• The expansion is expected to create around 10,000 jobs in the healthcare sector in Kerala.
• KIMS intends to acquire hospitals in Calicut and Trivandrum and aim to set up facilities in every district across Kerala in the future.

This expansion will potentially generate 10,000 jobs, bolstering healthcare infrastructure and employment in Kerala. 

KIMS Hospitals, which currently operates 16 hospitals across Telangana, Andhra Pradesh, Maharashtra, Kerala, and Karnataka, with over 5,000 beds, has already initiated its Kerala operations by taking over Sreechand Hospital in Kannur and entering an operations and management (O&M) contract with Westfort Hospital in Thrissur. Development at both locations is underway as part of their broader expansion strategy.

Commenting on the announcement, Dr Bhaskar Rao, Chairman and Managing Director of KIMS Hospitals said: “Our sole aim is to bring accessible and affordable clinical healthcare services with world-class amenities to the people of Kerala and ensure that no patient in need is deprived of treatment due to financial constraints.” 

The expansion plans for Kerala include the establishment of large-scale health cities with 800-bed hospitals in Kochi and Kozhikode over the next two years. KIMS also plans to set up a comprehensive oncology and transplant centre in Kannur and a 350-bed advanced transplant facility in Thrissur. 

Speaking on the announcement, Mr Farhaan Yasin, KIMS Kerala Cluster, CEO said: “With this expansion, KIMS Hospitals aims to not only elevate the healthcare standards in Kerala but also make cutting-edge medical care accessible to all ensuring high-quality healthcare reaches all sections of Kerala’s population”  

Future projects include hospital acquisitions in Calicut and Trivandrum, with longer-term goals to establish facilities in every district of Kerala. To achieve this, KIMS will largely adopt an asset-light model to ensure efficient, scalable growth.

About KIMS Hospitals

KIMS Hospitals is one of India's largest corporate healthcare networks, operating 16 hospitals with over 5,000 beds across Telangana, Andhra Pradesh, Maharashtra, and Kerala. Focusing on affordable tertiary and quaternary healthcare, KIMS offers comprehensive services across 25 specialities, including cardiac sciences, oncology, neurosciences, orthopaedics, organ transplantation, and mother & child care. New units are under development in Bangalore and Mumbai, further expanding its integrated healthcare services.