JB Chemicals Q2 Results Review - Earnings Surprises Unlikely On Elevated Expectations: Yes Securities

Yes Securities Report

JB Chemicals and Pharmaceutical Ltd. reported a solid revenue beat driven by mid-teen growth in organic domestic business and about Rs 840 million added from acquired brands.

Costs continue to stay elevated and despite that flat gross margin indicate lot of pressure form Azmarda cost of goods sold which in turn shows better gross margin of core business – an outcome of the price hikes taken in Q2.

Depreciation included amortisation for the acquired brands while employee stock ownership plan charge stood at Rs 180 million. Contract manufacturing organization business continues its momentum of Q1 with another Rs 1 billion revenue quarter leading to better than 15% growth in FY23.

JB Chemical continues to report solid numbers excluding acquired brands and with a midteen growth, is executing better than some of the other mid-sized players.

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