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- 02 May 2025
- ICICIdirect Research
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AJANTA PHARMA REVENUES GREW ~11 PERCENT YOY
News: Revenues grew ~11% YoY to ~₹ 1170 crore driven by Africa branded, India branded and Asia branded which grew 17% / 13% / 8% to ₹ 133 crore, ₹ 369 crore and ₹ 303 crore, respectively. Other businesses such as Africa tender de-grew 54% to ₹ 28 crore whereas US grew ~24% to ₹ 325 crore. On the operational front, EBITDA grew 6.8% YoY to ~₹ 297 crore with margins at 25.4% (down 102 bps YoY) as decent GPM performance (up 87 bps YoY to 75.8%) was neutralised by higher other expenditure. PAT during the quarter was at ~₹ 225 crore, up 11% YoY.
View: Branded businesses in India, Asia and Africa were driven by new launches and market share gains in existing products. US growth is expected to pick up. Africa tender continued to remain lumpy and management expects it to remain lumpy going ahead as well. Strong GPM performance was attributable to strong branded business growth (~65% of sales). Dent in EBITDA margins was attributable to field force expansion and higher marketing expenses. Overall, Ajanta continues to generate robust FCF (92% EBITDA conversion rate) driven by strong branded traction and efficient working capital management. The management has given guidance of low-teen revenues growth in branded business and mid to high teen growth in US business along with firm GPM and moderate capex.
Impact: Positive