- 03 May 2024
- ICICI Securities
AJANTA PHARMA Q4FY24- WELL-ROUNDED GROWTH DRIVEN BY BRADED PORTFOLIO
AJANTPHARM - 2634 Change: -96.10 (-3.52 %)News: Revenues grew ~20% YoY to ~Rs 1042 crore driven by India branded, Asia branded and Africa branded which grew 16% / 18% / 13% respectively. Other businesses such as US and Africa tender also grew 32% and 25% respectively. On the operational front, EBITDA came in at ~Rs 278 crore, up~86% YoY on a lower base with margins at 26.4%. PAT during the quarter was at ~Rs 203 crore, up 66% YoY.
Views: Branded businesses in India, Asia and Africa were driven by new launches and market share gains in existing products. So was the case with US generics (despite 8-10% price erosion. The company has guided for low teen growth in FY25 to be driven by 10-11% India growth, mid-teen growth in Asia / Africa and high single digit growth in US. Africa tender is expected to be flattish. EBITDA margins are expected to remain around 28%. However, in the past we have seen company surpassing its own guidance on many occasions. With ~70% contribution coming from the branded generics, Ajanta continues to deliver robust FCF. It has also announced 4th buyback (in three years) at Rs 2770 per share.
Impact: Positive