Ranvir’s Portfolio

Ajanta Pharma –

Q4 and FY 24 results and concall highlights –

Q4 Outcomes –

Revenues – 1054 vs 882 cr, up 20 pc
EBITDA – 278 vs 149 cr, up 26 pc ( margins @ 26 vs 17 pc )
PAT – 203 vs 122 cr, up 66 pc

FY 24 Outcomes –

Revenues – 4209 vs 3743 cr, up 12 pc
EBITDA – 1172 vs 783 cr, up 50 pc ( margins @ 28 vs 22 pc )
PAT – 816 vs 588 cr, up 39 pc

R&D spends @ 208 cr, @ 5 pc of sales. Expected to maintain R&D spends at similar levels for FY 25 as well

Sales breakup for FY 24 –

India branded sales @ 1308 cr, up 11 pc ( company is present across 4 segments – Opthal, Cardiac, Pain Management and Derma. Outperformed IPM in all segments except Cardiac ). Out of this, trade generics contributed to 160 cr of sales. Launched 14 new products in IPM

Asia branded sales @ 1057 cr, up 10 pc ( spread across ME, SE Asia, Central Asia ). Launched 18 new products in Asian Mkts

Africa branded sales @ 585 cr, up 5 pc. Launched 9 new products in Africa. Due to inventory rationalisation by distributors, primary sales were hit. Confident of clocking mid teen sales growth in FY 25

US generics sales @ 964 cr, up 16 pc. Reduced price erosions and lower API prices acted as tailwinds for US business. Expect mid single digits growth in FY 25. Company’s 02 facilities supplying to US cleared US FDA inspection with zero observations in FY 24

Africa institutional sales @ 249 cr, up 31 pc. This business is tender based and is unpredictable
( basically sales of anti-malarial generics )

Company announced a buyback worth 350 cr @ Rs 2770 / share

Added 200 new MRs in India

Gross Margins @ 75 pc for both Q4 and FY 24

Might see some increase in logistics costs in FY 25 due Red Sea crisis

Expect mid teens topline growth in FY 25 in Asia + Africa branded mkts. Expect low double digit growth in India business

Capex for FY 24 stood at 160 cr. For FY 25, capex expected @ 180-200 cr

Expected to maintain 28 pc kind of EBITDA margins for FY 25 as well. If Red Sea crisis doesn’t intensify, there may be some upside to the margins ( 100 bps type expansion )

Don’t expect aggressive price erosions in US business in FY 25 ( should only be in single digits ). A lot of drug shortages have started to appear in the US generics mkt which is an indicator of better pricing environment

75-80 pc of company’s Asia business is in the Chronic therapies. This is very sticky business

Disc: holding, biased, not SEBI registered