JB Pharma revenue grows by 30% FY23 despite challenges in international market
Mumbai-based JB Pharma has recorded robust growth in its revenue during quarter four of the financial year, 2022-23 which culminated on March 31, 2023 and its annual revenue grew by 30% to Rs 3149 crores despite challenges in the international market.
Announcing the financial results, J B Pharma, one of the country's fastest-growing pharmaceutical companies, stated that it has recorded revenue growth of 22% at Rs. 762 crores in Q4 FY23 over the same period during the previous financial year.
The company had also shown a healthy growth in its revenue during the year at Rs 3149 crores which translates to a 30% growth over the previous year, according to a statement released by the company.
JB maintained its growth momentum, with quarterly revenues of INR 762 crores increasing by 22%, completing the year with its revenue increased by 30% in FY23 to Rs 3149 crores.
The domestic formulations business clocked revenue of INR 380 crores for the quarter, representing a 29% increase, and was at Rs. 1640 crores for FY23, representing a 38% increase, while the international business performed well, increasing by 16% to Rs. 382 crores in the quarter and 22% to Rs. 1509 crores for the fiscal year.
The CMO company ended the year with over Rs. 400 crores in revenue, sustaining its quarterly revenue run pace of Rs.100 crores.
According to the statement, in Q4 FY23, operating EBIDTA increased by 21% to Rs. 181 crores, up from Rs. 149 crores in Q4 FY22. The operating EBIDTA increased by 26% to Rs. 765 crores in FY23 from Rs. 605 crores in FY22. The tax rate for FY23 was 26%, up from 24% in FY22, while PAT increased by 6% to Rs. 410 crores in FY23.
Finance costs rose to Rs. 14 crores for the quarter, primarily due to a term loan for brand acquisitions, while profit after tax increased by 4% to Rs. 88 crores in Q4 FY23.
Operating cash flow for FY23 was Rs. 626 crores, up from Rs. 170 crores in FY22, driven by a larger proportion of Indian business and a strong focus on profitability.
While the domestic business of the company increased by 38% in FY23 to Rs. 1640 crores from Rs. 1188 crores in FY22, the total foreign business income for the fiscal year was Rs. 1509 crores, a 22% increase, and international formulations revenue increased 13% to Rs. 1009 crores from Rs. 892 crores in FY22, the statement added.
Commenting on financial results, Mr Nikhil Chopra, CEO and Wholetime Director of JB Pharma, said, “JB continued its growth journey in the fourth quarter, thereby ending FY23 with strong performance across business segments.”
“Our market-beating performance in India is pivoted around big brands becoming bigger and significant demand acceleration in the acquired portfolio," he added.
Pointing out that each of the company’s top five brands has ascended through the ranks, Mr Copra said, “Further, Azmarda entered IQVIA’s Top 300 brands list and other acquired business in probiotics and paediatric segment have witnessed rank and market share gain.”
Stressing that despite the existing challenges the company’s performance in the International business has seen commendable gains, Mr Chopra said, “International formulations clocked mid-teens growth for the quarter. We continue to witness increased interest from existing and new clients in the CMO business, especially in the lozenges segment.”
“While we are cautious of the inflationary environment, our efforts are aimed at executing well, with productivity and cost optimisation as drivers, to deliver improved operating margins,” he added.