J B Chemicals net profit has taken a quantum jump of 344 per cent to Rs 13.64 crore from Rs 3.07 crore in the similar period of last year.
The company posted impressive performance during the first quarter ended June 2008 mainly due to higher exports, aggressive marketing and promotional efforts in the export markets, restructuring of borrowings coupled with series of initiatives taken to reduce inventory and receivables. Its net profit has taken a quantum jump of 344 per cent to Rs 13.64 crore from Rs 3.07 crore in the similar period of last year. The company's net sales increased by 30.9 per cent to Rs 137.91 crore from Rs 105.37 crore. The EBDIT moved up by 119 per cent to Rs 24.27 crore from Rs 11.08 crore.
The exports increased by 54 per cent to Rs 76.66 crore during the quarter under review from Rs 49.79 crore. In order to de-risk the fluctuating trend of rupee v/s dollar and to offset the adverse effect of the appreciation of the rupee as in the last year, the company had already taken forward cover by hedging and it now on a regular basis hedge its receivables.
J B Chemical expects to maintain its business momentum both in sales and profits in FY08-09 barring unforeseen circumstances as the investments/initiatives undertaken during the last two years have started contributing positively to the company's growth translating into improved business performance in Q1 of FY08-09 as compared to Q1 of last year.