Jubilant Organosys net up at Rs 137 cr

NEW DELHI: Pharmaceutical company Jubilant Organosys rode revenues from three manufacturing contracts and improved sales of key inputs to post a consolidated net profit of Rs 137 crore for the quarter to end March, compared with Rs 12 crore a year ago.

“Going forward, profitability would be sustainable,” said Jubilant Organosys executive director of finance, R Sankaraiah, pointing to orders worth $1 billion in contract research and manufacturing services. Of this, about $250 million will be realised this fiscal, he said.

The company’s revenues increased 18% to Rs 990 crore for the quarter to end March.

Consolidated profit rose 49% to Rs 421.5 crore for the fiscal year 2010 on an 8% rise in revenues to Rs 3,781 crore.

Jubilant shares rose 2.44% to Rs 344 at close on BSE on Monday.

The Delhi-based drugmaker raised Rs 387 crore from qualified institutional buyers during the quarter to repay part of its debt of Rs 2,393 crore. Earlier, the board approved a proposal to raise up to Rs 1,500 crore.

Jubilant has to repay foreign currency convertible bonds worth $68.8 million by May-end. “The company has adequate resources to repay this amount on maturity if not converted,” it said in a statement.

The company plans to invest Rs 400 crore, mainly to build a new vitamin plant and expand its existing facilities.