Jubilant Organosys Limited, an integrated pharmaceutical industry player and the largest Custom Research and Manufacturing Services Company in India, today announced its financial results for Q1 FY2009.

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

"We are extremely pleased with our operating performance in first quarter. Growth was across segments of business -as we benefited from strong demand for outsourcing in CRAMS and DDDS. Also, our Industrial and Performance Products business delivered much enhanced numbers on the back of very good demand for our products resulting in increased volumes. We have delivered consistently on a year-on-year basis on the Pharma and Life Sciences outsourcing platform by creating a stable and consistent model for growth. Our outlook for the future is extremely positive and is guided by the strong demand of our products and services offerings."

Q1 FY2009 (Apr. - Jun. 2008) compared to Q1 FY2008 (Apr. - Jun. 2007)

Revenues

Robust results in PLSPS (Pharmaceutical and Life Sciences Products and Services) continued to be the key driver of Revenue growth in the period. The Revenues in Q1 FY2009 stood 53.1 % higher from Rs. 540.0 crore to Rs. 826.6 crore. Growth is being witnessed across the outsourcing related segments comprising CRAMS and DDDS. The CRAMS business (which comprises Proprietary Products & Exclusive Synthesis, APIs, CMO of Sterile Injectables / non sterile products and Speciality Pharmaceuticals) saw a revenue increase of 78.0% from Rs. 252 crore to Rs. 448.5 crore in Q1 FY2009. International Revenues rose 73.8% from Rs. 278.9 crore to Rs. 484.6 crore in Q1 FY2009 -the growth came from across all the sub-segments of CRAMS businesses. Revenues from North American markets accounted for 46.9% due to consolidation with Hollister (where 3 months revenues were considered against 1 month only in Q1 FY2008) and Draxis (where 1 month revenues were considered) whereas those from the Europe contributed 16.0%.

Operating Profit

Q1 EBIDTA stood at Rs.173.2 crore from Rs.106.9 crore higher by 62% given the strong performance in PLSPS business. Given the stronger growth in the CRAMS operation and the favourable change in the product-mix the operating level profits have shown substantial improvement. EBIDTA margins were at 21.0% higher by 120 bps against last year same quarter.

Exceptional Items:

Exceptional items for the quarter is a loss of Rs.107.6 crore due to unrealised exchange loss on restatement of foreign currency borrowings including FCCB compared to a unrealised gain of Rs 87.9 crore in Q1 FY2008. The loss or gain in this regard is a non-cash charge/accrual.
As a prudent risk management policy, the Company doesn't enter into any forex derivatives which are speculative in nature. Hence there are no derivative transactions of a speculative nature outstanding as of date.

Profit Before Tax

Jubilant's PBT in Q1 FY2009 before exceptional items stood at Rs. 125.8 crore compared to Rs. 79.1 crore last year -thus growing 59.0%.
However the PBT after accounting for the exceptional items at Rs 18.2 crore compared to Q1 FY2008 of Rs 167 crore.

Net Profit and EPS

Overall strong performance in PSLPS and IPP resulted in a stronger Net Profit before exceptional items at Rs. 120.4 crore when compared to Rs. 55 crore last year. Diluted EPS before exceptional items for the period was thus at Rs. 6.73 against Rs. 3.09 in Q1 FY2008.

However the PAT after accounting for the exceptional items at Rs 12.8 crore compared to Q1 FY2008 of Rs 142.9 crore and thus the diluted EPS for the period was at Rs. 0.71 against Rs. 8.02 in Q1 FY2008.

Completion of Draxis Health Inc. acquisition

Jubilant completed the transaction to acquire Canada based Draxis Health Inc. effective May 28, 2008. Jubilant financed US$ 253 million transaction using a combination of proceeds from a previous FCCB issue and debt amounting to US$ 160 million. Given the attractiveness of the business model and the opportunities available in radiopharmaceuticals the transaction is likely to have a very attractive payback. Jubilant strongly believes that the above said acquisition will accelerate Company's growth potential due to:

• Entry into the attractive, regulated, high-growth and high-margin radiopharmaceutical business
• Enhanced CMO capabilities in sterile injectables segments - making it one of the top 5 injectable CMOs in North America and the largest Indian company
• Strengthened position as the preferred outsourcing partner for global pharmaceutical & biotech companies
• Robust growth prospects
• Strong product pipeline, in radio-pharmaceuticals, with periodic launches
• Certainty of revenue due to long-term contract arrangements with global pharma companies such as Johnson and Johnson, GE Healthcare, GSK etc.

Outlook for FY2009

Jubilant continues to see strong operating dynamics across its businesses driven by strengths that are inherent to the Company's operating model. Given expanded capacities, larger product profile and constantly expanding global market footprint the Company expects to post more than 50 % increase in revenues for FY2009.

The earnings performance is expected to be correspondingly robust, which should deliver better margins and a noticeable growth in net earnings. The earnings outlook does not consider any potential effect of exceptional items that may arise in the future which will primarily relate to unrealised foreign exchange gains/losses on account of restatement of outstanding FCCBs and foreign currency loans.

About Jubilant

Jubilant Organosys Ltd. is an integrated pharmaceutical industry player, one of the largest custom research and manufacturing services (CRAMS) and drug discovery and development services companies out of India. The company has a presence across the pharmaceutical value chain for products and services such as proprietary products ,exclusive synthesis, active pharmaceutical ingredients, contract manufacturing of sterile injectables (liquids and lyophilized) products, non-steriles (ointments, creams and liquid) and radiopharmaceuticals, drug discovery services, medicinal chemistry services, clinical research services ,generic dosage forms and Health Care.

Jubilant Organosys has geographically diversified manufacturing facilities at ten locations: Gajraula (UP), Nanjangud (Karnataka), Roorkee (Uttarakhand), Nira (Maharashtra), Udaipur (Rajasthan), Samlaya (Gujarat), Ambarnath (Mumbai), Salisbury, state of Maryland (USA), Spokane, state of Washington (USA) and Kirkland, state of Quebec (Canada). Together, these help Jubilant cater to 150 customers across more than 50 countries around the world.

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Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential product characteristics and uses, product sales potential and target dates for product launch are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. Jubilant Organosys may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with the regulatory bodies and our reports to shareholders. The company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.

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