JB Chemicals surges 12%, hits record high on strong Q3 performance

Shares of JB Chemicals & Pharmaceuticals, on Thursday, surged 12 per cent intra-day to Rs 1,213 on the BSE after reporting more-than-doubled net profit at Rs 154.30 for the December quarter (Q3FY21), on the back of strong operational performance. The company had profit of Rs 66.40 crore in the year-ago quarter. The stock surpassed its previous high of Rs 1,150, touched on September 21, 2020.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 90.8 per cent year on year (YoY) at Rs 171 crore, margin improved 1030 basis points (bps) to 31.2 per cent during the quarter, driven by growth and operating leverage. Revenue from operations rose 27.9 per cent YoY at Rs 548.2 crore. The reported topline in the quarter also includes revenues deferred from the September quarter (Q2FY21).

The management said that the India business continues to witness a positive trend in the chronic segment and the company is among the fastest growing companies in Indian pharmaceuticals market (IPM).

The operational and revenue momentum continues – with strong contributions from domestic formulations and international business. The domestic Formulations maintain secular outperformance compared to IPM growth rates, driven by strength in chronic segments and expanding prescriber coverage. With improved doctor/prescriber coverage trends and anticipated revival in acute, expect the healthy domestic trend to continue, the company said.

Meanwhile, the company’s board of directors has declared interim dividend of Rs 8.50 per equity share of face value of Rs 2 (425 per cent) for the financial year 2020-21. The dividend will be remitted/ dividend warrants will be dispatched on March 5, 2021, it said.

At 09:34 am, the stock was trading 9 per cent higher at Rs 1,177 on the BSE, as compared to 0.07 per cent decline in the S&P BSE Sensex. A combined around 780,000 equity shares had changed hands on the counter on the NSE and BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link