Jubilant Organosys Q3 PAT up 90 percent

New Delhi: Jubilant Organosys Ltd, (former Vam Organics), India's largest speciality chemicals company has announced its financial results for the quarter and nine-months ended 31st December 2003.

The company's net sales have increased by 22.3 percent to Rs. 230 crore in the third quarter of 2004 from Rs.188 crore in the corresponding quarter last year. While the company's EBIDTA for the quarter increased 34.2 percent to Rs. 45.1 crore compared with Rs. 33.6 crore last year its net profit stood at Rs. 23.7 crore 89.9 percent higher than the net profit of Rs. 12.5 crore for corresponding period last year. This translates into an EPS of Rs. 16.16 for share of Rs. 5 each.

Commenting on the company's performance for Q3, 2004, Mr. Shyam S Bhartia, chairman & managing director, Jubilant Organosys, said: "Our results for the quarter are strong. They reflect our ability to implement strategy and achieve success in extended businesses. These include our higher value added CRAMS and API businesses that will be our key growth drivers going forward. Our speciality chemicals business continues to show healthy growth and we intend maintaining the past momentum in this business in the future.

Our operating backbone remains extremely robust with strengthened R&D, world-class manufacturing capabilities and high level of business efficiencies. The company is expanding the production capacities in CRAMS and API businesses to meet the global outsourcing demand. We continue to maintain our optimism to deliver a progressive performance across all our business lines."

Reflecting the company's strategy to move up the value chain with greater revenue and earnings from high-value added products, contribution from pharmaceuticals and speciality chemicals to net sales was 68 percent during the quarter. The company's pharmaceuticals and life science chemicals division registered a growth of 42.1 percent in net sales while its performance chemicals division's net sales increased by 25.2 percent.

The company also recorded strong growth in exports for the quarter under review across all business divisions, with pharmaceuticals and life science chemicals exports increasing by 66.9 percent due to 95 percent growth in API exports and 60 percent growth CRAMS exports. Exports of performance chemicals continued to grow during the quarter, increasing 146 percent over the similar period last year. Organic Intermediates exports were relatively subdued as the company sold higher volumes of ethyl acetate in the domestic market where price realisations were higher.