Jubilant Life Sciences Stock Slumps 5% After Q4 Net Loss

Shares of Jubilant Life Sciences slumped over 5% on the BSE in the morning trade on Monday. The company reported a net loss of Rs100.65cr in Q4FY19 on account of a one-time loan settlement with International Finance Corporation (IFC). The company had posted a consolidated net profit of Rs152.40cr in the year-ago period.

The company’s total income during the fourth quarter ended March 31, 2019, stood at Rs2,379cr as compared to Rs2,274.87cr last year.

Shyam S Bhartia, Chairman and Hari S Bhartia, Co-Chairman & Managing Director, Jubilant Life Sciences said, “the company reported record performance in revenue and profitability in FY19 led by robust growth in our Pharmaceuticals segment. Our strategic focus on the de-risked business model and being closer to the customer with a leadership position in key products has driven this growth. Our global competitive edge due to low cost, vertical integration and capacity additions with a commitment to ensure a high level of compliance will further strengthen our businesses. We witnessed healthy performance during the quarter, which was offset by certain one-time charges. We continue to remain focused on generating operating cash to invest to support our growth and reduce the debt for a strong balance sheet.”

The company continues to work on its strategic focus on being closer to the customer and further strengthening its leadership position in defined businesses. It expects stable performance in FY20. The Pharma segment is expected to continue to deliver steady revenues with range bound margins across businesses. In LSI segment, growth will be led by Nutrition and Specialty Intermediates businesses. The company is focused on generating operating cash to invest in building an R&D led product pipeline particularly in Specialty Pharmaceuticals business and on strengthening of its balance sheet by reducing debt to ensure sustainable growth.

Jubilant Life Sciences Ltd is currently trading at Rs564.30, down by Rs31.75 or 5.33% from its previous closing of Rs596.05 on the BSE.

The scrip opened at Rs601.95 and has touched a high and low of Rs601.95 and Rs553.45 respectively. –IIFL