Jubilant Organosys, an integrated pharmaceutical industry player and India’s largest custom research manufacturing services company, has reported an increase of more than 100 per cent in net profit for its second quarter ended September 30, 2007. The company painted an optimistic outlook ahead.
During the quarter, the company’s net profit doubled to Rs 110 crore on revenues of Rs 618.3 crore that grew by 32.7 per cent from Rs 465.9 crore in the corresponding quarter of the previous year, Jubilant said in a statement on Tuesday.
Revenue from the pharma and life science products and services (PLSPS) segment grew by 54 per cent to Rs 368.2 crore compared with Rs 239.2 crore in the same quarter of last year.
The gains were strongest in the company’s Custom Research and Manufacturing Services (CRAMS) operations where contribution from the recently acquired firm Hollister was better than projections.
Sales from the industrial and performance products business segment were higher by 10.3 per cent at Rs. 250.1 crore, up from Rs 226.7 crore in the corresponding quarter of the previous financial year, as the company leveraged its brand pull and strong product line-up to drive growth.
Commenting on the company’s performance, Shyam S Bhartia, Chairman and Managing Director and Hari S Bhartia, Co-Chairman & Managing Director, Jubilant Organosys Ltd, said: “The results in this quarter have once again shown the strength of Jubilant’s business model in the Pharma and Life Sciences. CRAMS remains the lead value creator. We remain extremely positive about potential of the contract injectables business and the contribution that Hollister is already making to our operations. Having assembled the required building blocks in outsourcing we are now ready to realise strong growth across the value chain. The results in the industrial and performance products business are also giving us reason to be optimistic, which are witnessing much better earnings in the second quarter.”