**Ajanta Pharma – **
Q3 concall highlights –
Revenues @ 1105 vs 972 cr, up 14 pc
EBITDA @ 314 vs 170 cr, up 85 pc !!!
PAT @ 210 vs 135 cr, up 56 pc !!!
Geography wise sales performance –
India branded – 308 cr, up 5 pc ( led by strong growth in Ophthalmology segment @ 15, Cardiology segment growth at 6 pc. Launched 14 new products in India in FY 24 including 4 new to Mkt products ). India business operates in 4 main areas – Cardio, Derma, Opthal, Pain management
Asia branded – 292 cr, up 28 pc ( launched 15 new products in FY 24 in Asia AoR )
Africa branded – 155 cr, up 7 pc ( launched 5 new products in FY 24 in Africa AoR )
US Generics – 252 cr, down 5 pc ( launched 4 new products in US in FY 24 )
Africa institutional generics – 86 cr, up 180 pc ( basically anti-malarial products )
Money spent on R&D @ 86 cr for Q3 @ 5 pc of sales
Expect logistics costs to go up in Q4 due ongoing red-sea issues
EBITDA margin guidance for full FY 24 @ 27 +/- 1 pc. Margins should inch up further for next 2-3 yrs !!!
Capex for entire FY 24 expected @ 125 cr ( including maintenance capex, Rs 80 cr already spent )
Company expanded its number of MRs for its Asia, Africa branded business over the last few Qtrs. Hope to see increased MR productivity and mid to low teen top line growth in these geographies over next 2 yrs
Company is open for inorganic growth in the domestic mkts as they r generating healthy cash flows
If they r not able to identify acquisition tgts, they ll keep paying hefty dividends
Price erosion in US Mkts is abating, general mkt conditions turning favourable
On malarial vaccines having an impact on their Africa institutional business – vaccine efficacy isn’t very good. Plus the roll outs have been very slow. Don’t see a major impact on their business in next 3-5 yrs
Likely to file 8-12 ANDAs in US in next FY vs 6-8 ANDAs this FY. Hence the R&D costs should be higher
Company’s rank in the covered Mkts –
Opthal – 02
Cardio – 10
Derma – 05
Pain Management – 10
Company aspires to grow by 15 pc on topline in Q4
Disc : hold a tracking position, biased, not SEBI registered
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