Ajanta Pharma –
Q2 concall and results highlights –
Revenues – 1186 vs 1028 cr
Gross margins @ 78 vs 75 pc
EBITDA – 311 vs 291 cr ( margins @ 26 vs 28 pc due exceptional forex loss to the tune of 25 cr )
PAT – 216 vs 195 cr
Breakdown of sales –
Branded generics –
India – 386 vs 335 cr, up 9 pc
Asia – 296 vs 230 cr, up 28 pc
Africa – 213 vs 157 cr, up 35 pc
Total branded sales – 894 vs 743 cr, up 20 pc
Generics –
US generics – 232 vs 237 cr, down 2 pc
Africa generics – 43 vs 37 cr, up 16 pc
Total generic sales – 275 vs 274 cr
R&D expenses @ 5 pc of sales
India business – therapy wise breakdown –
Cardiac – 38 pc
Opthal – 30 pc
Derma – 23 pc
Pain Management – 9 pc
Company has a 3200+ strong MR field force. India sales exposure to NLEM is low @ 12 pc. 65 pc of India sales come from chronic therapies
Company has 12 brands with size > 25 cr
Launched 11 new products in India in H1 out of which 04 were first to market products
Breakup of India sales growth – 1.2 pc volume + 5.3 pc price + 3.1 pc new products
In US, company has 55 ANDA approvals with 46 products in the market. Launched 2 new products in H1 in US
Company has declared an interim dividend @ Rs 28/share
Added 200 MRs in India business in H1
Adjusted for the forex loss in Q2, EBITDA margins would have been 28 pc – same as LY
Capex ( including maint capex ) for FY 25 estimated at 200 cr. Have already spent around 130 cr in H1
Company to launch 4 new products in US in H2. This should result in better growth vs H1. For FY 26 again, number of launches in US should be higher leading to better growth rates
The branded generics business of India + Asia + Africa should grow in mid teens in FY 25. US business should grow at around 5-7 pc. H1 growth in branded generics was 19 pc and for US business was 2 pc. Not guiding for African institutional generic business as its generally unpredictable and lumpy
EBITDA margin guidance for full FY 25 @ 28+/- 1 pc
Growth drivers for medium term, as indicated by the management include – strong product pipeline, venturing into newer markets ( EMs in Asia + Africa ), increasing sales and distribution strength by adding more MRs in India and entry into new therapeutic areas in India, Asia and Africa. Company is also open to inorganic opportunities. Not averse to take on Debt for the same
Company’s MR productivity is at Rs 7.5 lakh/ month
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
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