India's JB Pharma's Q2 profit rises on higher domestic demand

J B Chemicals and Pharmaceuticals

06/11/2024 12:46

Nov 6 (Reuters) - India's J B Chemicals & Pharmaceuticals  JBCH.NS  reported a rise in
second-quarter profit on Wednesday, helped by higher domestic demand for its gastrointestinal and
cardiovascular drugs.
        The drugmaker's consolidated net profit rose 16% to 1.75 billion rupees (about $20.8 million)
for the quarter ended Sept. 30.
    Its revenue climbed 13.5% to 10.01 billion rupees, with the domestic formulations business – which
forms about 60% of total revenue – rising 22%.    
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3MD0U1
    
    KEY CONTEXT
    The company continued to benefit from buoyant demand for its copycat drugs such as antibiotic
Metrogyl, which treats infections of the liver and stomach, and lozenges for sore throats.
    Analysts noted that drugmakers would benefit from domestic demand in the quarter, as heavy rains
would likely result in the spread of water-borne diseases.
    A recovery in demand in J B Pharma's key South Africa market also aided its earnings, the company
said.
    Larger peers Cipla  CIPL.NS  and Sun Pharma  SUN.NS  beat second-quarter profit estimates on the
back of resilient sales in India and the U.S., a key market for these companies.
    
    PEER COMPARISON
                                          Estimates (next 12         Analysts' sentiment        
                                               months)                                          
                   RIC    PE     EV/EBI  Revenue     Profit    Mean      # of     Stock to      Div
                                 TDA     growth (%)  growth    rating*   analyst  price         yield
                                                     (%)                 s        target**      (%)
 J B Chemicals                                                                              
 Pharmaceuticals                                                                                
 Ltd                                                                                            
 Cipla Ltd                                                                                  
 Sun                                                                                         
 Industries Ltd                                                                                 
 Dr Reddy's                                                                                 
    
    JULY-SEPTEMBER STOCK PERFORMANCE


($1 = 84.2940 Indian rupees)

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JB Pharma v Peers    https://tmsnrt.rs/3YV6Pra
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 (Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))