On Thursday, after market hours, the company released its financial results, reporting a 66% YoY jump in its consolidated net profit of ₹203 crore for Q4FY24. The drugmaker reported a net profit of ₹122 crore in the January-March quarter of the previous fiscal.
Also Read: Bajaj Finance share price jumps over 7% after RBI lifts restrictions on its eCom and Insta EMI Card
Its revenue from operations during the reporting quarter improved by 20% YoY to 1,054 crore, while the EBITDA came in at ₹278 crore against ₹149 crore in Q4FY23, which is an increase of 86%. The EBITDA margin surged to 26%.
The strong performance in the quarter was led by solid growth in African institutional sales, which reported 23% YoY growth in Q4 and better-than-expected gross margins (due to the softening of API prices).
Growth in branded markets was strong, which came in line with the analyst estimates. Asia, Africa, and India sales grew by 18%, 13%, and 14%, respectively, on a YoY basis in Q4.
The US market demonstrated exceptional performance this year, attributed to factors such as a reduction in price erosion, mitigated drug shortages, lower logistics costs, and favourable API prices.
Price erosion in the US is projected to range from high single-digits to low double-digits. For FY25, the company aims to file 8–12 ANDAs and plans to launch 5–6 products, with a majority of these launches scheduled for the second half of FY25.
In India, the business exhibited robust sales performance, driven by increased volumes, price adjustments, and the introduction of new products. The company introduced 15 new products, including four first movers.
It has also onboarded approximately 200 new MRs in recent months, bringing the total MR count to around 3,000 as of March 31, 2024, said domestic brokerage firm Systematix Institutional Equities.
Also Read: Q4 Results today: Titan, Tata Tech, MRF, Adani Green among 50 to post earnings
For the full fiscal year, the company recorded a 12% year-on-year revenue increase, reaching ₹4,209 crore. Additionally, the net profit surged to ₹816 crore from ₹588 crore, marking a notable 39% improvement.
Moving ahead, the company anticipates revenue growth of low teens for FY25, with the branded generics segment projected to grow at a mid-teens level. In India, growth expectations range from high single-digits to low double-digits.
Management aims to achieve growth rates approximately 200–300 basis points higher than the Indian Pharmaceutical Market (IPM) growth rate. Additionally, US business is forecast to deliver a mid- to high-single-digit growth rate.
Meanwhile, The board has approved the buyback of its equity share at Rs. 2,770 per share with a total payout of ₹351 crore including tax.
Should you buy the stock after Q4?
Following the company’s Q4 performance, Systematix Institutional Equities has adjusted its forecasts for Ajanta Pharma to reflect stronger growth in branded markets. According to its revised projections, the firm anticipates Ajanta Pharma to achieve revenue, EBITDA, and PAT CAGR of 9.2%, 9.3%, and 15.2% over FY24–FY26E.
Also Read: Crisil to Sanofi India — four dividend-paying stocks to trade ex-dividend today
Additionally, the brokerage has updated its target price-earnings (PE) multiple to 26x and suggests a ‘Hold’ on the stock, with a revised price target (PT) of ₹2,235.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
More
Less
Published: 03 May 2024, 10:28 AM IST
Reference :
Reference link
