Jubilant Organosys net drops 91 pct on forex losses

MUMBAI, July 15 (Reuters) - Jubilant Organosys Ltd JUBO.BO on Tuesday posted a worse-than-expected 91 percent fall in consolidated net profit for the quarter ended June, hurt by heavy foreign exchange-related losses.

Noida-based Jubilant also forecast a more-than-50-percent revenue growth for the year to March 2009, citing expanded capacities, larger product profile and expanding global presence.

“The earnings performance is expected to be correspondingly robust, which should deliver better margins and a noticeable growth in net earnings,” the company said in a statement.

The profit outlook, however, excluded the impact of potential unrealised forex-related gains or losses, Jubilant added.

For the quarter ended June, Noida-based Jubilant posted a net profit of 127.6 million rupees, including an unrealised forex-related loss of 1.08 billion rupees, lower than a Reuters poll estimate for net profit of 659 million rupees.

In the year-ago quarter, Jubilant’s 1.43 billion rupee net profit included 879 million rupees in unrealised forex-related gains, the company said in a statement.

Excluding the forex loss Jubilant’s net profit more than doubled to 1.20 billion rupees in the quarter, the company said.

Revenue rose by more than half to 8.27 billion rupees, topping estimates for 7.67 billion rupees, driven by growth in its contract research and manufacturing services and drug discovery services and consolidation of Hollister-Stier.

Hollister is a U.S.-based injectibles maker that Jubilant acquired in 2007.

In May, Jubilant also concluded the acquisition of Canadian biotechnology firm Draxis for $253 million, which it financed through a combination of a foreign currency convertible bond issue and debt of $160 million, Jubilant added.

Ahead of the results, Jubilant shares closed 0.9 percent lower at 302.25 rupees in a Mumbai market .BSESN that ended 4.9 percent lower.

So far this year, Jubilant shares have lost more than 12 percent, outpacing the BSE healthcare index's .BSEHC 11.5 percent fall. (Reporting by Bharghavi Nagaraju; Editing by Prem Udayabhanu)