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Dolat Capital: JB Chemicals In Transition Mode, Expect Growth Momentum To Improve Post Q2

Dolat Capital: JB Chemicals In Transition Mode, Expect Growth Momentum To Improve Post Q2

Brightly coloured pharmaceutical medication sit in this arranged photograph.  (Photographer: Chris Ratcliffe/Bloomberg)
Brightly coloured pharmaceutical medication sit in this arranged photograph. (Photographer: Chris Ratcliffe/Bloomberg)

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Dolat Capital Report

JB Chemicals and Pharmaceuticals Ltd. reported a muted Q2 led by weak exports and recovering domestic formulations (on a high base).

Excluding contrast media, medical prescription growth came in at healthy 7% YoY in India driven by sustained growth momentum in the cardiac portfolio.

Exports (both formulations and active pharmaceutical ingredients) declined 9% YoY, 7% QoQ led by higher stocking.

While the fixed cost structure has more or less resumed normalcy, improved product mix (Metrogyl price hike in India) coupled with lower employee costs led gross and Ebitda margins expand to 69% and 25% respectively.

Click on the attachment to read the full report:

Dolat Capital JB Chemicals & Pharma Q2FY21 Result Update.pdf

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