With the Centre’s diktat requiring the top 300 brands in the local market to sport QR codes from this month, a JB Chemicals and Pharmaceuticals’ top executive said, the initiative would benefit patients if it were expanded to more brands.
The QR code initiative helps weed out spurious drugs and helps patient education, as pharma companies are able to share information with patients, Nikhil Chopra, Chief Executive and Wholetime Director with JB Pharma told businessline. The company has two brands in this bracket (Rantac 150 and Cilacar 10) and he welcomed the move, if government were to expand it to more products. Chopra was speaking after the company posted its financial performance for the the first quarter (Q1) ended June 30, 2023.
Q1 result
Big brands in the chronic segment business have powered JB Pharma’s performance in the quarter under review. The company recorded revenues of ₹896 crores, up 14 per cent from ₹785 crores in the corresponding quarter, in the previous year. Operating EBITDA (Earnings before Interest Depreciation and Taxes) improved 28 per cent to ₹243 crores and profit after tax registered a 35 per cent growth to ₹142 crores.
“Our domestic business continued its growth trajectory through strong momentum in our chronic portfolio and acquired assets. Our big brands, especially in chronic segment, continue to outpace the market and have reached new milestones,” he said.
EBITDA margins improved during the quarter on account of better business mix, increased efficiencies in sourcing, and higher volumes, the company said. “The first quarter has seen a robust performance both in terms of top line and operating profit, and we remain positive about delivering on our business objectives. We will maintain our distinctive focus on India and the CDMO (contract development and manufacturing) business, while maintaining our efforts to control costs & increase efficiencies across the organisation,” he added.
The company’s domestic formulations business, at ₹489 crore, grew 17 per cent. And its revenue from international business crossed ₹400 crore, for the first time in a quarter. Chopra had identified the company’s India business and its CDMO business as two sweet spots for the company. The CDMO business continued its growth momentum recording revenue of ₹119 crores, he said, growing at 19 per cent.
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Published on August 9, 2023
