Thanks for the update., Aman
The company has tried to come clean.
But, yet, it is completely illegal to market a drug that has not been approved by the Regulatory Authority.
The drugs that were confiscated had the label " Manufactured by Safetab Life Sciences" & “Marketed by Ajanta Pharma Ltd, Aurangabad, Maharashtra”
Let us await further details and investigation.
Mutual Fund holding of Ajanta Pharma has shown a increase from the last 3 months ( i.e Apr’18, May’18, June’18)
Source : https://www.rupeevest.com/Mutual-Fund-Holdings/132331
Ajanta got clearance from USFDA for it’s Dahej facility. Good days for Pharma companies on regulatory front continues.
decent set of results
good to see OPM back to 32%
Income from operations at Rs. 511 cr. against Rs. 473 cr., up 8%.
EBITDA at Rs. 157 cr. against Rs. 127 cr., up 24%; EBITDA at 31% of revenue.
Profit after tax at Rs. 106 cr., against Rs. 95 cr., up 12%; PAT at 21% of revenues.
India sales were Rs. 178 cr as against Rs.143 cr posting growth of 24%.
Emerging Market branded generic sales was Rs. 209 cr. (against Rs. 169 cr.) posting 23% growth.
Africa branded generic sales was Rs. 77 cr. (against Rs. 71 cr.) posting 9% growth
Asia branded generic sales was Rs. 129 cr. (against Rs. 96 cr.) posting 35% growth
Africa Institution sales was Rs. 54 cr. (against Rs. 97 cr.) posting 44% de-growth.
US generic sales was Rs. 61 cr. (against Rs. 54 cr.) posting 13% growth
Disc - Invested
investor presentation for the quarter
Key highlights of Ajanta Pharma’s last nine years’ Annual reports. It is interesting to see the company’s milestones and growth over the years.
Disclosure: Not invested currently.
http://www.careratings.com/upload/CompanyFiles/PR/Ajanta%20Pharma%20Limited-10-03-2018.pdf
CARE rating reaffrimed
disappointing set of results
Income from operations at Rs. 544 cr. against Rs. 540 cr., up 1%.
EBITDA at Rs. 166 cr. against Rs. 184 cr., down 10%; EBITDA at 31% of revenue.
Profit after tax at Rs. 125 cr., against Rs. 132 cr., down 5%; PAT at 23% of revenue.
India sales were at 179 cr vs 178 cr ( no growth)
Asia branded generic sales was Rs. 135 cr. (against Rs. 104 cr.) posting 29%
growth.
US generic sales was Rs. 80 cr. (against Rs. 26 cr.) posting 203% growth
Africa Institution sales was Rs. 45 cr. (against Rs. 130 cr.) posting 65% de-growth
Africa branded generic sales was Rs. 91 cr. (against Rs. 89 cr.) posting 3% growth
overall flattish results, good perfromance in US and Asia were countered by negative growth in Africa and flattish performance in India
Another quarter of disappointing results Q3FY2019InvestorPresentation.pdf (1.8 MB)
India business showing some improvement but exports across all markets is done.
Promoter needs some funds and wants to sell some shares. Company is supposed to buy those shares, why? Company is cash rich, why don’t they start giving dividends? Promoters will get the money they want and minority shareholders will benefit too.
The impact of buyback is similar to dividend when promoters participate except that the company does not pay dividend distribution tax. Investors will pay capital gains tax is applicable.
good to see company back on track after a disastrous q3fy19.
Africa branded business has degrown , from 109 cr in q4 fy18 to 75 cr in q4 fy19 ( degrowth of 31 %)
Africa instituion business has de grown 26 % yoy , from 63 cr to 46 cr yoy
Asia business showing slight growth of 9 % yoy , from 132 cr to 143 cr.
USA business has done well, shown a massive growth of 79 % yoy , from 42 cr to 76 cr .
Indian business has done decent growing 8 % yoy from 148cr to 159 cr.
overall flattish results , great performance in USA , decent performances from Asia, India , helped to mitigate the bad performance from Africa.
Isn’t it concerning that their Africa branded business has degrown so much?
Yes Ayush, even I think so.
The continuous de-growth in Africa Institution was on expected lines., due to competition in anti-malarial drug contracts.
Institution has shown a massive de-growth of 49% on annual basis.
But Africa branded de-growth comes as a negative surprise.
Also, it would have been much better, if the company would have also shared profits earned from different regions, along with the revenue figures.
It would have given us an indication about how profitable their US venture has been until now.
The reply from management also doesn’t give any details
The decline was in line with guidance and our MDs comment in third quarter press release. Now the things have normalized and from here onwards u will see mid to high single digit growth from the region.
news update
disc: invested
Ajanta Pharma’s AR is out.Key takeaways:
-> Company registered a growth of 16% in the domestic market as against 11% for the industry.This was led by 28 launches in the branded generics segment.9 of these were “first to market”.
-> The anti-malaria business in Africa was the worst hit.Company says it has always been forthcoming about the unpredictability of this business.The immediate future remains uncertain.
-> US business grew 46% on the back of 8 new launches.This takes the total number of “on the shelf” products to 25.Company expects to make 10-12 filings every year(13 ANDA filings in FY19) However,the cost of servicing the US market has risen and thus,Ajanta expects this market will be challenging.
-> Due to a 49% decline in revenues from the Insttl. business,the company registered a de-growth in revenues.This is the first time in 15 years that Ajanta has reported a YoY decline in revenues.
-> Company generated OCF of 375cr. which helped fund capex(361cr.) entirely from internal accruals.In Fy20,construction work on Ophthal section at Guwahati and greenfield manufacturing facility for oral solid at Pithampur in Madhya Pradesh will continue to put some pressure on margins.The total capex for FY20 is expected to be 350cr.
-> EBITDA Margins contracted by 250 bps.This was on the back of higher costs from capex at Dahej & Guwahati.The utilisation at both these facilities is still quiet low and thus Ajanta couldn’t offset the hit on margins.
-> The African markets started facing major issues two years back post Crude price decline.Thus,the company decided to fix any inventory issues they had in those geographies.Moreover,the management took a conscious decision to go slow in that market.The decline in FY19 was on “expected lines”.The US market has helped the company neutralise the adverse impact from Africa to some extent.
-> The company operationalised it’s expanded R&D wing in Mumbai.Total spend ~100cr. over last 2 years.
-> Inventory has risen due to growing US ops.The US market has a longer WC cycle.
All in all,I found the AR to be quiet subdued and “cautiously optimistic” at best.The company is preparing itself for better days(whenever they come back) …getting the new facilities stabilised and having an improved R&D centre.I got the sense that the management expects the issues in the Insttl. business to persist and thus the revenue growth may be muted in FY20 as well.On the other hand,the US market is looking good.However,higher cost of servicing and a stretching WC cycle are key things to watch out for.
The stock has done very little in an overall weak market over the last 1 year.RoE,RoCE and margins are at multi-year lows.Imho the time to buy is still a bit away.
Disc.: Not invested.Views are biased.
decent set of results.
lncome from operations at Rs.612 cr. against Rs. 511 cr up 20%.
EBITDA at Rs. 168 cr. against Rs. 157 cr., up 7%; EBITDA at 28 % of revenue.
Profit after lax at Rs. 115 cr. against Rs. 106 cr., up 8%, PAT at 19% of revenue
Q1 FY2020, total export sales were Rs. 404 cr. (against Rs. 324 cr’) posting growth of 25%
Emerging Market branded generics sale was Rs.221 cr’ (against Rs.209 cr.) posting
6% growth.
Africa branded generic sale was Rs. 92 cr. (against Rs. 77 cr.) posting 20% growth.
Asia branded generic sale was Rs. 126 cr. (against Rs. 129 cr.) posting 3% degrowth.
US generic sale was Rs. 102 cr. (against Rs.61 cr.) posting 67% growth.
Africa Institution sale was Rs. 81 cr. (against Rs. 54 cr.) posting 50% growth
India sales grew by 9 % from 178 cr to 194 cr.
overall a very encouraging set of results, good to see revenue growth coming back after some dull quarters. very encouraging to see growth in africa branded business.
snippet from companies website :
