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

Reuters

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

6. Nov. 2024 um 12:46 nachm. GMT

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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 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 months)		Analysts' sentiment
	RIC	PE	EV/EBITDA	Revenue growth (%)	Profit growth (%)	Mean rating*	# of analysts	Stock to price target**	Div yield (%)
J B Chemicals and Pharmaceuticals Ltd	JBCH.NS	37.19	24.22	13.68	22.13	Buy	11	0.95	0.66
Cipla Ltd	CIPL.NS	25.90	16.39	8.14	9.84	Hold	33	0.97	0.81
Sun Pharmaceutical Industries Ltd	SUN.NS	35.29	26.01	9.73	14.75	Buy	32	0.93	0.75
Dr Reddy's Laboratories Ltd	REDY.NS	18.07	11.86	9.29	3.51	Hold	34	0.97	0.63