Ajanta Pharma Q3 Results Review - Miss On Operating Margin: Dolat Capital

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Dolat Capital Report

Ajanta Pharma Ltd.’s revenues were slightly better than our estimates while missed operating margin on account of forex derivative loss of Rs 369.9 million.

Ajanta’s India revenues grew by 13% YoY in Q3 driven by new launches and strong volume growth in all its focused therapies – cardiovascular, ophthalmology, dermatology and pain management, outperformed the Indian pharma market. Asia branded business grew by 17.5% YoY in Q3 FY23 seen traction in new launches while Africa branded business declined 13% YoY impacted by currency volatility.

Africa sales grew 9% YoY in constant currency terms. We expect branded generics business of India, Africa and Asia to have combined revenue compound annual growth rate of 14% over FY23E-25E, backed by medical representative productivity and new product launches.

U.S. revenue grew 60%/44% YoY/QoQ on higher Tamiflu sales benefitted from flu season which is likely to be one off opportunity.

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Dolat Capital Ajanta Pharma Q3FY23 Result Update.pdf

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