New Delhi, Q3 FY2010 - Revenue up by 6% to Rs. 961 crore - EBITDA up 52% to Rs. 238 crore - PAT up 215% at Rs. 101 crore 9M FY2010 Revenue at Rs. 2,791 crore, EBITDA at Rs. 599 crore and PAT at Rs. 284 crore

Sharpening Business Focus

In line with the continued strategy of enhancing Jubilant\'s focus as a Pharma and LifeSciences company, the Board has in principle approved the demerger of its Agri and Performance Polymer business into a separate company for pursuing the growth prospects of both the businesses independently and efficiently.

Enabling Resolution

In order to strengthen the capital structure of the company and also to pursue the sustained growth momentum in the PLSPS space, the Board has approved raising of further fresh capital by way of Equity / Equity linked instruments up to Rs. 1000 crore.

Commenting on the Business reorganization and Company\'s performance, Mr. Shyam S Bhartia, Chairman & Managing Director and Mr. Hari S Bhartia, Co- Chairman & Managing Director, Jubilant Organosys Ltd, said:

"Jubilant Organosys remains firmly focused on achieving superior results from its PLSPS business and it has built a strong operating position within its defined verticals in this space. The proposed Demerger of Agri and Performance Polymer business into a separate company will enable both Jubilant Organosys as well as the new entity to focus on their respective core business. This initiative will enable each business to independently pursue and efficiently realise its operating objectives.

Our performance was led by healthy growth in the PLSPS business. The biggest contribution to revenue came from CRAMS, which benefited from robust volume growth.The performance was strong in the CMO business where we have started delivery against the new contracts. PLSPS has thus witnessed a strong increase in EBITDA margins as a result of expansion in CRAMS margins and margin stabilization in Life Sciences Chemicals. "

Q3 FY2010 (Oct. - Dec. 2009) compared to Q3 FY2009 (Oct. - Dec. 2008)

Revenues

Q3 Revenues grew by 5.7% and were at Rs. 961.5 crore against Rs. 909.6 crore last year.

Pharma and Life Sciences Products & Services (PLSPS)

The PLSPS segment grew at 13.0% to Rs. 858.2 crore from Rs. 759.5 crore. Within that (Custom Research and Manufacturing Services) CRAMS continued to drive the growth and was up 10.0% at Rs. 547.2 crore from Rs. 497.7 crore last year mainly because of a strong increase in the volumes and delivery against the new contracts in CMO. Life Sciences Chemicals business grew by 23.5% to Rs. 163.9 crore on back of improved market conditions. Nutritional Ingredients business grew by 18.6% to Rs. 49.4 crore.

Agri and Performance Polymers (APP)

The revenue performance APP segment was at Rs. 103.3 crore from Rs. 150.1 crore previously. The lower performance was on account of a decline in revenues in fertilizers business by 51%.

International Sales formed 64.9% of the Company\'s total revenues. In Q3 FY2010 they grew by 8.5% and stood at Rs. 624.2 crore from Rs. 575.1 crore in Q3 FY2009. Growth mainly came from China where revenue grew by 66.8% to Rs. 97.7 crore and North America where revenue grew by 5.8% to Rs. 357.5 crore and it remains the largest market for the Company.

EBITDA

In Q3 FY2010 the EBITDA grew by 52.1% and was at Rs. 237.9 crore from Rs. 156.4 crore earlier. The EBITDA margin stood better by 750 bps at 24.7% from 17.2% last year. In PLSPS segment, the EBITDA increased 44.1% to Rs. 242.8 crore from Rs. 168.5 crore last year. The EBITDA margins in PLSPS segment improved strongly and were at 28.3% in Q3 FY2010 from 22.2% in last year mainly on account of margins expansion in Proprietary Products and DDDS business. The EBITDA margins in the APP segment were at 8.7% as compared to 4.1%. The margins in APP segment have started stabilising compared to the previous quarters because of stabilization of subsidy and liquidation of high cost inventory.

Profit Before Tax

Q3 FY2010 Profit before Tax grew by 305.1 % and stood at Rs. 126.8 crore against loss of Rs. 61.8 crore previously.

Net Profit and EPS

Net Profits in Q3 FY2010 grew by 215.1% and stood at Rs. 100.8 crore from a loss of Rs. 87.6 crore last year. The respective basic EPS was at Rs. 6.83 in Q3 FY 2010 against Rs. (5.95) last year.

9M FY2010 (Apr. - Dec. 2009) compared to 9M FY2009 (Apr. - Dec. 2008)

Revenues

Revenues in 9M FY2010 grew by 4.3% and were at Rs. 2,791.0 crore against Rs. 2,676.7 crore in 9M FY2009.

PLSPS

The PLSPS segment grew by 10.7% to Rs. 2,464.2 crore as compared to Rs. 2,226.2 crore previously. Performance was strong in the CRAMS business where revenues grew by 10.7% to Rs. 1,559.9 crore against Rs. 1,408.7 crore last year. Growth in Pharmaceuticals Products was very good at 28.3% to Rs. 282.1 crore in 9M FY2010.

APP

The APP segment had revenues of Rs. 326.8 crore from Rs. 450.5 crore in 9M FY2009.The reduction in revenues were due to lower volume and price realization.

International Sales formed 64.0% of the Company\'s total revenues. In 9M FY2010 they grew by 11.9% and stood at Rs. 1,787.5 crore from Rs. 1,597.0 crore in 9M FY2009. Growth mainly came from China where revenue grew by 23.0% to Rs. 272.9 crore and North America where revenue grew by 14.3% to Rs. 986.6 crore and it remains the largest market for the Company.

EBITDA

The 9M FY2010 EBITDA grew by 16.5% and was at Rs. 598.8 crore from Rs. 514.0 crore last year. The EBITDA margin stood at 21.5% from 19.2% in 9M FY2009. The EBITDA in the PLSPS segment rose by 26.2% at Rs. 637.9 crore from Rs. 505.5 crore earlier. The EBITDA margins in PLSPS business were at 25.9.% in 9M FY2010 as against 22.7% previously. The EBITDA margins in APP segment were at 2.8% from 9.6% last year mainly due to Agri business, which has started to stabilise in the recent quarter.

Profit Before Tax

The 9M FY2010 Profit Before Tax grew by 468.3% and stood at Rs. 355.4 crore from a loss of Rs. 96.5 crore in the previous year.

Net Profit and EPS

The 9M FY 2010 Net Profits were at Rs. 284.3 crore against loss of Rs. 137.5 crore last year. The respective basic EPS was at Rs. 19.27 against Rs. (9.34) last year.

Outlook for FY2010

The EBITDA guidance of Rs. 875 to Rs. 900 crores could be impacted to the extent of 5% on account of change of execution profile of certain contracts signed and due to fluctuation in foreign currency.