JB Pharma underlined its tested track record of being one of the fastest growing pharmaceutical companies in the subcontinent by announcing impressive numbers in the financial results for the third quarter ended 31st December 2022.
When comparing the quarterly financial performance for the same period in the previous year, JB Pharma recorded revenue of INR 793 crores in Q3 FY23 versus INR 601 crores in Q2 FY22, registering growth of a whopping 32%. Operating EBITDA* (Earnings Before Interest Depreciation and Taxes) increased by 26% to INR 193 crores as compared to INR 153 crores and the Profit after Tax stood at an imposing INR 106 crores as compared to INR 84 crores registering growth of 26%, for the same period.
Commenting on financial results, Mr. Nikhil Chopra, CEO and Wholetime Director, JB Pharma mentioned, “JB continues its growth journey delivering strong financial performance in the quarter. Our organic business outpaced the market, whereas our inorganic portfolio added to the upsides with better than anticipated momentum. Our inorganic strategy is built around growing the India business and increasing share in the chronic segment. During the quarter we acquired Razel, a leading brand for lipid-lowering. This further strengthens our chronic presence, as we enter the ‘Statins’ category – the largest segment in cardiology. Our strong prescriber base and existing chronic teams will help in further growing the brand and drive operating leverage”. He further added “The CMO business continued its revenue traction, while other parts of international business have also witnessed good growth. We are equally cautious about the inflationary environment and continue to build on productivity and cost optimization initiatives to enable us to maintain our operating margins.”
For Three Quarters or Nine months of the Financial Year 2022-23, the Company recorded revenue of INR 2387 crores as compared to INR 1800 crores for the same period in the previous year, registering growth of 33%. Operating EBITDA (Earnings Before Interest Depreciation and Taxes) increased by 28% to INR 584 crores as compared to INR 457 crores. Profit after Tax was INR 322 crores as compared to INR 301 crores.
Financial Performance
Q3 FY23
| Particulars (INR Crores) | Q3 FY23 | Q3 FY22 | YoY Growth |
| Revenue | 793 | 601 | 32% |
| Operating EBITDA | 193 | 153 | 26% |
| Op. EBITDA Margin (%) | 24.3% | 25.5% | |
| Profit Before Tax | 141 | 114 | 24% |
| Profit After Tax | 106 | 84 | 26% |
9M FY23
| Particulars (INR Crores) | 9M FY23 | 9M FY22 | YoY Growth |
| Revenue | 2387 | 1800 | 33% |
| Operating EBITDA | 584 | 457 | 28% |
| Op. EBITDA Margin (%) | 24.5% | 25.4% | |
| Profit Before Tax | 433 | 402 | 8% |
| Profit After Tax | 322 | 301 | 7% |
Sales Performance
Q3 FY23
| Particulars (INR Crores) | Q3 FY23 | Q3 FY22 | YoY Growth |
| Domestic Formulations | 407 | 286 | 42% |
| International Formulations | 386 | 315 | 23% |
| Total Revenue | 793 | 601 | 32% |
9M FY23
| Particulars (INR Crores) | 9M FY23 | 9M FY22 | YoY Growth |
| Domestic Formulations | 1260 | 904 | 39% |
| International Business | 1127 | 896 | 26% |
| Total Revenue | 2387 | 1800 | 33% |
As per IQVIA MAT Dec’22 data, JB Pharma continues to be the fastest growing company among the top 25 in the industry, growing by over 19.5% as compared to IPM growth at 6.5%. JB registered YoY revenue growth of 32% in Q3 FY23 and 33% for the 9 months of FY23. Domestic business continued to record over INR 400 crores in revenue for the third quarter in a row, out-pacing industry growth, while the international business grew at 23% to INR 386 crores in Q3 FY23 and by 26% to INR 1127 crores in the 9 months of FY23.
Domestic formulations business maintained its market beating performance growing at 42% in Q3 FY23 and 39% in 9M FY23, and excluding sales from the acquired brands, growth was mid-teens for Q3 and 9M FY23. International formulations and CMO business recorded strong growth, with the CMO business crossing INR 300 crores in the 9 months of FY23 recording a growth of 92% in Q3.
Operating EBIDTA grew by 26% in Q3 FY23 and 28% in 9M FY23. Operating EBIDTA margin was at 24.3% in Q3 FY23 vs 25.5% in Q3 FY22. Gross margins were at 62.3% in Q3 FY23 vs 65.7% in Q3 FY22. Higher Azmarda sales and Cost Inflation continue to impact gross margins.
Excluding non-cash ESOP cost, Employee cost as a percentage to sales improved to 15.1% in Q3 FY23 vs 15.6% in Q3 FY22. Non-cash ESOP cost as a percentage to Reported EBITDA was at 10.3% in Q3 FY23 as compared to 19.5% in Q3 FY22. Other expenses as a percentage to sales improved to 22.8% in Q3 FY23 from 24.5% in Q3 FY22. Profit after Tax grew by 26% to INR 106 crores in Q3 FY23
Domestic Business
Domestic business continued to record over INR 400 crore revenue for the third quarter in a row. Domestic business, excluding sales from acquired brands, grew at mid-teens, out-pacing industry growth. New Product contribution was at 5% to domestic sales for Q3 FY23
As per IQVIA MAT Dec’22 data, JB Pharma continues to be the fastest growing company among the top 25 in the industry, recording growth of over 19.5% as compared to IPM growth at 6.5%. JB Pharma is also the fastest growing company in the Cardiology segment amongst the top 10 players. As per IQVIA Q3 FY23 vs Q3 FY22 data, the acquired portfolios recorded growth of over 34% with Azmarda recording a growth of 50% and Sporlac growing by 41%. As per IQVIA MAT Dec’22, Azmarda ranked #270 and Sporlac #361, gaining in ranks
International Business
International business continues its strong performance with revenue growing at 23% in Q3 FY23 and 26% in 9M FY23. International formulations recorded highest ever quarterly sales with the Rest of the World and the US region recording strong sales growth, while Russia-CIS business showed improved revenue traction.
CMO business recorded 92% growth in Q3 FY23 to INR 96 crores. CMO accounted for 27% of international revenue for the first 9 months of FY23 as compared to 18% in FY22. New launches in specific markets showed good progress.
