JB Chemicals Gets Approval for Wholly-Owned Subsidiary in Philippines; Stock Rises

JB Chemicals & Pharmaceuticals has got authorisation from the company’s wholly-owned subsidiary, Unique Pharmaceutical Laboratories, FZE, Dubai, to establish a new wholly-owned step-down subsidiary in the Philippines. The proposed firm would run the company’s pharmaceutical product sales and marketing operations in the Philippine market. At its meeting on August 9, 2023, the company’s board of directors gave the same approval.

In early trade on August 10, shares of JB Chemicals and Pharmaceuticals rose 5% to a 52-week high of Rs 2,844.55, as investors praised the business’s good results for the months of April to June. The business’s net profit for the June quarter increased 35% YoY to Rs 142 crore, while its top line increased 14% to Rs 896 crore. The drugmaker’s strong performance in the domestic and foreign formulations businesses in the prior quarter may be credited with the strong topline and bottom-line growth. 

Despite sales for acute treatments being affected in the quarter by the delayed monsoon, the domestic formulations business saw an increase of 17% year over year. The overseas formulations segment’s revenues increased by 12% during the period under consideration. In the June quarter, the company’s overseas sales for the first time exceeded Rs 400 crore. 

The robust increase within the CDMO (Contract Development and Manufacturing Organisation) sector, which was up 19% on-year, was another encouraging finding in the company’s Q1 earnings. Higher volumes, improved business mix, improved sourcing efficiency, and lower logistics and freight costs all contributed to the drugmaker’s operational performance being significantly improved. As a consequence, its EBITDA margin increased from 24.2% to 27.1%, as compared to the same quarter the previous year. 

JB Chemicals & Pharmaceuticals is engaged in the manufacturing of pharmaceutical specialities in various dosage forms, herbal remedies, diagnostics, generic drugs, and active pharmaceutical ingredients (APIs). 

JB Chemicals & Pharmaceuticals is currently trading at Rs 2791.55, up by 79.60 points or 2.94% from its previous closing of Rs 2711.95 on the BSE. The scrip opened at Rs 2749.90 and touched a high and low of Rs 2838 and Rs 2735.60, respectively. So far 6767 shares were traded on the counter. 

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