Ajanta Pharma

Ajanta continues its steady execution, sales grew by 12% and EPS by 18%. Concall notes below.

FY25Q1 concall

• Sales grew at 12%, Gross margin 77%, EBITDA margins ~ 29%, PAT margins ~ 21%

• Expect low teens sales growth in FY25 with branded generics growing in mid-teens and 28% EBITDA margins

• Employee costs increased by 33% as they took one-time gratuity provisions of 30 cr. (ex-of that, employee costs increased by 19%)

• US :

  • 7% YOY growth (2 new launches)

  • Target to file 8-12 products in FY25 and mid-single digit growth in FY25

  • Higher single digit price erosion, market is favorable

• Domestic :

  • 10% YOY growth, launched 1 new product (1 first launch in India)

  • MAT June 2024 : Volume 0.4% (vs 0.5% IPM), Price: 4.8% (vs 4.2% IPM), New product: 3.8% (vs 2.9% IPM)

  • Cardiac quarterly growth was 14.8% in Q1FY25 (vs 12.2% for IPM)

  • PCPM has touched 4 lakhs in Q1 (vs 3.5 lakhs in FY24)

  • Trade generics : 41 cr. (vs 36 cr. in Q1FY24)

• Emerging market (branded generics)

  • Africa branded grew by 45% (launched 2 new products in Africa)

  • Asia branded grew by 9% (launched 7 new products in Asia)

  • Launched 9 new products in emerging markets

  • Might add 100-150 MRs towards end of FY25

  • Will focus on growing aggressively in Central Asia and Anglo Africa

  • Currently they have hedged currency for next 6-month sales, they go upto 9-10 months depending on their view on currency

• Africa institution

  • Decline of (-)36% YOY

• Running at 60-65% capacity utilization

• R&D stood at 4.5% of sales

• Renewable energy contributed 30% of energy needs

Disclosure: Invested (no transactions in last-30 days)