- 04 Nov 2022
- ICICIdirect Research
Ajanta Pharma posts mixed results; sales, GPM in line but EBITDA margins below par
AJANTPHARM - 3350 Change: 20.25 (0.61 %)News:
Ajanta Pharma's Q2FY23 revenues grew 6% YoY to Rs 938.1 crore driven by growth in domestic and Asian markets. EBITDA de-grew 25.3% YoY to Rs196.3 crore due to high other expenditure. Margins declined 877 bps YoY to 20.9%. Sharp margins decline was also due to, 1) high freight costs, 2) forex loss 3) preponing of certain expenses. Adjusted net profit declined 20.1% YoY to Rs 156.6 crore
View:
Ajanta Pharma's numbers were in line with our estimates on the revenue and GPM front but a miss on the EBITDA front mainly due to elevated freight costs and adverse currency movements. Ajanta’s domestic business was driven by growth of 10% in cardiology, 14% in ophthalmology, 20% in dermatology and 19% in pain management. Africa-branded business was affected due to appreciation of the rupee against Euro but in constant currency terms flat quarter sequentially. Asia business witnessed strong growth driven by new launches and better price hikes. EBITDA margins suffered due to elevated freight costs but are likely to improve in H2QY23
Impact:
Positive