See a record year in 2008: Jubilant Organosys

Shyam S Bhartia, Chairman and Managing Director, Jubilant Organosys, said they have increased their sales by 10% and the profits by a large margin. Bhartia adds that the company had a better performance in its Custom Research & Manufacturing Services, or CRAM as well as pharma and life science business.

The company's operating profit margins, or OPMs were around 21%. There has been a volume growth of 20% in CRAMs and 8% overall.

Excerpts from CNBC-TV18's exclusive interview with Shyam S Bhartia:

Q: Net profit has jumped quite considerably. Rs 48 cr was the base and you have delivered Rs 64 crore. Even on the revenue front, Rs 463 crore is where the sales have come in versus about Rs 423 crore.Why the big jump?

A: We have increased our sales by 10% and increased our profit by a much larger margin. It is because of better performance in our CRAMs (Custom Research & Manufacturing Services) business and also our pharma and life and science business overall.

Pharma and life science business has grown much faster than our other businesses.

Q: What is the volume growth that you have seen in each one of your segments, particularly Crams?

A: For Crams, the volume growth was about 20% and the phrama life sciences was 8% overall. For the whole year, it was 36%.

Q: Is there an extraordinary item on the bottomline or is that completely operational?

A: It is completely operational.

Q: Where have the OPM come in for this quarter?

A: The OPM, in this quarter, has been around 21%.

Q: Do you hope to maintain the OPM in the coming quarters or do you see some price pressure on account of the price of molasses?

A: Molasses prices are going to be soft by next year. The company expects another record year in 2008 and the strong outlook is driven by anticipated growth in pharma and life science business, which is driven by better Crams performance and success in our drug discovery services initiatives.

Q: What kind of revenue mix are you targeting for FY08?

A: We are not giving any guidance growth of the sales but we expect another record year 2008.

Q: Any acquisitions on the anvil? You have already acquired US based company Hollister.

A: There are no new acquisitions on the anvil. We hope to close this acquisition Hollister by June this year and once we close this acquisition, we would like to integrate this acquisition.

Q: What kind of revenues do you seeing coming from this company?

A: We hope to have 9-10 months revenue from this company.

Q: What kind of revenues do you see Hollister adding to your top line?

A: Hollister revenue last year was about USD 55 million and it is growing at the rate of 35-40% every year. So, we hope to have atleast 10 months revenue.

Q: what are you projecting in terms of growth?

A: We are not giving any guidance but we hope to have a better performance than this year and we hope to maintain the growth.

Source : CNBC