New Delhi: JB Chemicals & Pharmaceuticals Ltd. on Tuesday reported a 36% year-on-year (YoY) rise in its September quarter net profit to ₹151 crore, led by healthy growth in domestic and international business. Revenue increased 9% YoY to ₹882 crore in the fiscal second quarter (Q2FY24).

Earnings before interest, tax, depreciation, and amortization (Ebitda) for the quarter stood at ₹251 crore, a 24% improvement YoY, with an Ebitda margin of 28.5%., the company said in a notification to the exchanges.

Employee costs rose 9% to ₹148 crore, while cash and cash equivalent stood at ₹91.62 crore as of 30 September.

The company has proposed a capital expenditure of ₹145 crore for FY24.

“…Our transformed go-to-market framework is driving gains in market share and improvement in our rankings in IPM. Our acquired portfolio has not only helped us increase our chronic segment presence and market rankings. But it is also beginning to positively impact our operating margins,” said Nikhil Chopra, CEO, JB Pharma.

“Our domestic business showed strong resilience even during a period when the acute segment had relatively softer demand. International business has performed well, with sustained traction in our CDMO segment. International formulations have shown strong growth outside South Africa.”

Revenues from domestic business grew 11% to ₹481 crore in Q2, largely led by the performance in the chronic segment even as acute portfolio suffered from softer demand, it added.

As per IQVIA data for H1, JB Pharma was the fastest-growing company among the top 25 in the chronic segment recording a growth of 18% YoY.

International business generated revenues of ₹401 crore during Q2, up 7% YoY on the back of good performance in the Contract Development & Manufacturing Organization (CDMO) business, which recorded revenues of ₹115 crore in Q2FY24, a 5%YoY growth.

The company also registered a 7% YoY growth in its international formulations business to ₹263 crore. Excluding South Africa, the business grew in double-digits in Q2, the company added.

India and CDMO business should constitute 75-80% of total revenue in near term, the company has guided. Both businesses generate high RoCE and operating margins.

“India business should continue to deliver market-beating growth with a focus on increasing chronic share to 60% in the mid-term,” it added.