They can only provide timetline at AGM, its quite a long procedure…
Debt: its no more big concern with Debt equity ratio 0.71 and Interest service coverage ratio 3.09.
Again they are talking about reducing it further…
They have USD denominated bond but guided dollar revenue is natural hedge against currency risk.
Not heard about anti dumping duty…
I’m bullish on their north america product portfolio,they are leader or among top three in many products and also bullish on promoters who have created large wealth for shareholders through Jubiolant Food…
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Jubilant Life Sciences wants to launch remdesivir injections in tablet form for Covid patients
intresting to watch for approval of sublingual route. as an intensivist will tell u that oral/SL route is better in pandemic since IV drug is administered only in hospitalised pt/ mod to severe cases which definately improves outcome but no role in stopping spread of disease. let’s see. not approved yet in usa for sublingual route though
wonderful discussion on future of pharma . must watch for jubiliant investors.
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Many one off quarters in jubilantlife performance, this might be the reason why the share is not getting the type of momentum like the other pharma stocks like laurus labs.
Q1 consolidated profit at 88 crores. Profit declined by about 52%. Another disappointing quarter from jubilant, but due to the covid pandemic it was expected that radio pharma segment will be a disappointing one. How ever the company reduced debt of rs 343 crores on constant currency basis.
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waiting for your analysis of Q1 sir. ur word of assurance gives us strength to hold for long term.
Kindly guide us Orion brother.
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Few important points from the concall
management quite bullish on the upcoming quarters
demerger likely to be completed by DecemberDecember-January
1500 crore cash in balance sheet will be utilized to repay the bonds of $200 million in 2021
company has entered into contract with 4 major pharma companies to contract manufacture the vaccine( sterile injectables)
management believes that capacity will be very less when compared with opportunity size in covid vaccine manufacturing.
#this year comany has reduced 343 crore debt on constant currency basis.(can some one please explaine what is this constant currency basis debt reduction??)
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will unplz tell me vikky whether these 200 mn r considered in debt or not. means after repayment debt will reduced by 1400cr m I right
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Result is past…which was not so good but management is very much positive for remaining quarters and I have no reason to disbelieve….
Reason for weak Q1 Pharma performance :
Supply side issue-Nanjangud plant was down for two months as 72 employees were infected with covid 19.The plat started only is June20.
Demand side issue: April-May saw decline in revenues due to postponement of elective procedures led by COVID-19 related restrictions on hospital visitations. It was down 50% during this period but normalized now to 90% pre covid level as these procedure cann’t postponed for long.Also allergy business volume now at 100% level of pre covid.
Pharma revenue down 18% and ebitda down 46%.
Life Science Ingredients
This segment did well actually with ebitda up 2% though revenue down 9%.
Management sounded quite bullish about this segment. Good pricing and demand of vitamine B3 and other nutritional products. Good cash generation from this business this quarter with better working capital cycle. Talking about double digit growth in this segment.
Drug Discovery & Development Solutions
Topline grew 26% and bottomline 85%.
So reason for the weak performance looks genuine….
CONCALL HIGHLIGHTS:
Mar 20 Concall takeaway was continuity/stability in business in covid 19 era but surprisingly current concall talks about growth!!
Net debt on a constant currency basis reduced by Rs 343 Crore during Q1’FY21….big bull has big question around this….how come 343 Cr repayment in current quarter compare to 500 odd Cr in whole of last year…actually he wanted commitment to big debt reduction in next few quarters as well…again along with big bull 2/3 other participants asked about around 1500Cr cash in the books.
Management reply…343 Cr repayment because good cash generation from LSI business, better working capital cycle….1500Cr cash for bond repayment part of which due next year Oct. Not given exact repayment amount ,said…. depend upon cash generation.
CMO
Signed contract with 4 big drug companies into basically covid drug/vaccine….confident about at least ½ tobe launched during this year and rest next yr. Added one line for this specific business during current quarter.
Current remdesivir capacity complete sold out and doubling in net two months considering high local and export demand. Manufacturing remdesivir API and Key Starting Material inhouse and getting dosage manufactured from third party.
Launched herbal base animal nutritional drug which has some local as well as global customers…
Mr Loyola of Rare Ent has asked about high losses in Triad business of around 200 Cr…Management’s
Logic was its no longer standalone business…its strategic one…Radiopharma manufacturing and distribution…Mr Loyala was sort of adamant and pressed hard,if you manage this losses, profitability will rise substantially , upon which management explained with gowth in ruby fill and new tie up with Navidea Bio to distribute their products and future such tie ups will bringdown the losses .
Capex this year around 500Cr including R&D expences.
Many enquiries from china plus one customers and hope to convert into business.
Demerger by this dec. or Jan 21.
Disclosure: Invested, Large part of portfolio, views maybe biased/misinterpretation…
Not sebi registered advisor…no buy/sell recom.Going to hold position.
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CFO resigned due to personal reasons. I request the senior members to post their view on the implications
.
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Hi, isn’t 2 months quite a long time for facility to be shut due to covid? Thanks
What can you do if politicians get involved?
Jubilant got permission to reopen the plant only after they got licence to manufacture covid drug remdesivir…
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This is the reason for fall in stock today ?
May be fire in Noida office and factory
Jubilantlife said that they had an injectable CMO contract with couple of vaccine manufacturers in the USA. Did they started manufacturing the vaccines?? Are moderna and Pfizer their clients ?? Can any senior member throw some light on this topic??
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NCLT approved demerger of the jubilant life sciences. But it seems no one is interested in posting the news here in value picker forum. I request the senior board members to look into the nclt order and tell us whether the scheme is beneficial to the minority shareholders. Thanks in advance.
these new molecules and treatment therapies can add a lot of value to Jubilant’s pharma business going forward, huge opportunities ahead
jt_corporate_deck.pdf (4.0 MB)
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Hi,
If possible, can you please elaborate “huge opportunities” . I could not make out much after going through the doc.
Thanks
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