Another good set of results from Ajanta with revenue growth of 15%, EBITDA growth of 32% and PAT growth of 64%. Gross margins are still quite high at 77%. Growth has been broad based, with India growing at 13%, emerging branded business (including Africa) at 19%, Africa institution at 58% and 1% growth in US. R&D spends are still quite low (~5% of sales).
Within India business, cardio segment is still growing at a slightly lower pace than industry average (13% vs industry growth of 14%). Derma seems to be coming back (4% vs 3% for industry) and pain management growth is really good (14% vs -1% for industry). Overall good set of results, lets see how US business does going forward and if the Africa institution recovery is a 1-quarter phenomenon.
Disclosure: Invested (position size here)