Jubilant Life Sciences posts 12.2% drop in net profit in Q1

New Delhi: Drug maker Jubilant Life Sciences’ net profit has dropped 12.2% over last year for the first quarter ended June 30 as a result of erosion of its generics business in the US and rising expenses.

Jubilant posted net profit of Rs 144 crore in the first quarter of financial year 2018, down Rs 20 crore from Rs 164 crore during the same period last fiscal year. The drug maker’s net profit in the quarter ended March 31 was Rs 149 crore.

According to a filing by Jubilant on the Bombay Stock Exchange website, the firm’s total expenses had also risen 12.9% in this quarter over the same period last financial year.

The firm’s total revenue rose 9.8% to Rs 1,596 crore from Rs 1,454 crore during the first quarter last fiscal, the filing shows.

Jubilant's earnings before interest, taxes, depreciation and amortization ( EBIDTA) was Rs 344 crore, according to a release by the drug maker.

“We have started FY18 on a steady note, with our pharma segment recording its highest ever revenues during the quarter despite margin contraction in the US generics business,” stated Shyam S Bhartia, Chairman, Jubilant Life Sciences.

Going forward, Jubilant expects “continued robust growth” going forward, led by growth in its specialty pharmaceuticals-injectables and life science ingredient business.

Jubilant’s revenue from its pharmaceuticals segment grew 8.4% to Rs 818 crore and its life sciences ingredients business grew 13.5% to Rs 738.3 crore this quarter over the same period last financial year.

At the same time, revenue from its drug discovery solutions business dropped 17.1% to Rs 41.2 crore from Rs 49.7 crore in the quarter ended June 30, 2016.

“We continue to focus on operating cash generation to reduce our debt levels and strengthen the balance sheet,” said Bhartia.

Share prices of Jubilant Life Sciences on Tuesday dropped 1.17% to close at Rs 703.70 a piece on BSE, while the benchmark Sensex ended 1.13% lower.