J B Chemicals and Pharmaceuticals has posted satisfactory growth in sales and profits during the second quarter ended September 2017 despite strong rupee against dollar, higher staff cost and higher depreciation. Its net profit increased by 14.4 per cent to Rs.51.72 crore from Rs.45.20 crore in the similar quarter of last year. The net sales moved up by 16.1 per cent to Rs.340.31 crore from Rs.293.11 crore. EPS improved to Rs.6.11 from Rs.5.12 in the last period
The sales of formulations in domestic market increased by 25.3 per cent to Rs.157.61 crore. The sales of contrast media products increased marginally by 1.88 per cent to Rs.10.91 crore. The sales of formulations in global market increased by 4.8 per cent to Rs.105.25 crore. Its sales in Russia-CIS region declined by 16.6 per cent to Rs.12.07 crore. Other formulations exports went up 49.1 per cent to Rs.24.53 crore. Its APIs sales increased by 26.7 per cent to Rs.26.18 crore.
During the last period, J B Chemicals has increased its domestic field force by over 600 people and has started bearing fruit in sales. The additional manpower has helped improved focus on product and markets. The chronic products sales increased to 59 per cent during the quarter. Though higher manpower cost due to this hiring has surpassed the profit for the quarter, this investment is expected to increasingly add to the topline going forward.
The business environment in the company’s global business is still challenging. The sales in regulated market remained under pressure. Though certain African markets continue to show business and currency vulnerability, the company expect better sales in the second half in other countries of the region.
For the first half ended September 2017, its net sales increased only by 2.9 per cent to Rs.633.76 crore from Rs.615.95 crore. However, its net profit declined sharply by 24.2 per cent to Rs.72.09 crore from Rs.95.05 crore. Its employees cost increased by 19.7 per cent to Rs.108.82 crore.
J b chemical net surges
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