JB Chemicals & Pharmaceuticals Limited : Press Release - Financial Results for Q3 2011-12

Press Release BSE Scrip Code: 506943 NSE Symbol: JBCHEPHARM

Mumbai, January 25, 2012:

Financial Results for Q3 2011-12. Financial Performance:

The financial results for the quarter/nine months ended December 2011 are strictly not comparable with the results of the respective corresponding period in the previous year due to divestment of Russia-CIS OTC business during the year, which was significant part of the business.
During the quarter, the net sales at Rs. 149.55 crores were 30.98% lower Y-o-Y. The domestic formulations business and Rest of the world exports registered Y-o-Y growth of 14.23% and 52.37% respectively during the quarter. The expansion of field force in metro cities-rural markets and introduction of new products has helped achieve growth in the domestic formulations business, besides continued focus on growth brands and continuing concentration on enhancement of productivity. The Rest of the word exports grew on account of better traction in the key markets.
The quarter under review show further sharp depreciation of Rupee against US Dollar, and consequently the company not only suffered loss of Rs. 10. 39 crores but also had to make mark-to-market provision of Rs. 23.27 crores. This has resulted in loss of Rs. 5.17 crores at PAT level. The company is taking steps to minimize exchange fluctuation impact going forward.
The summary of financial performance for the period of nine months ended
December 2011 is as under:
(Rs. in crores)

Net Sales	487.77
EBIDTA	111.31
PAT	633.33*

*includes exceptional income on sale of Russia-CIS OTC business.

Business Initiatives:

The company remains fully focused on domestic formulations business and has taken initiatives such as increase in field force, new products launches, and entry into new and strengthening of the existing markets for scale up and growth in this business and the company is quite confident of achieving new growth in this business segment. The Rest of the world exports have been consistently performing well. Lucrative site transfer opportunities, inorganic pursuits for building new base, acquisition of new dossiers and filing of new ANDAs for expanding growing US business are some of the initiatives being considered for scale up of the Rest of the world exports. Post sale of OTC business, the prescription products business in Russia-CIS is under restructuring process to make the same more profitable.
The cash surplus on the balance sheet has been invested in debt schemes of mutual funds and bank deposits, and will be used for growth of existing pharmaceuticals business.
The company is fully committed to enhancing shareholder value, and is confident of delivering through desired growth through new business initiatives, enhancement of efficiency and productivity across the organization and stringent cost control.

About JBCPL:

JBCPL, one of India's leading pharmaceutical companies, manufactures & markets a diverse range of pharmaceutical formulations, herbal remedies and API's. JBCPL exports to many countries worldwide with a strong presence in Russia, Ukraine, CIS countries and South Africa. The Company continues to invest in growing its share in the regulated markets in USA, Europe, Australia and Brazil. JBCPL has a strong R & D set-up for development of NDDS formulations, filing of DMF's and ANDA's. Its State-of-the-Art Manufacturing facilities are approved by renowned international regulatory authorities.
For more information on JBCPL visit our website at www.jbcpl.com. For more details, you may contact:
M.C. Mehta
Company Secretary- General Manager
J. B. Chemicals & Pharmaceuticals Ltd.
91 22 3045 1311

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Forward Looking Statements:

This Press Release may contain Forward Looking Statements regarding future events and future performance of

J.B. Chemicals & Pharmaceuticals Ltd. that involve risks and uncertainties that could cause actual results to

differ materially from those that may be indicated by such statements.