Ajanta Pharma (AJANTPHARM) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue rose 12% year-over-year to Rs. 1,145 crore, with net profit up 18% to Rs. 246 crore, driven by strong branded generics, US generics, and emerging markets.

• EBITDA increased 22% to Rs. 330 crore, with margin expanding to 29%.

• Branded generics contributed 76% of revenue, with India, Asia, and Africa all posting double-digit sales growth.

• Cashflow from operations reached Rs. 466 crore, and free cashflow was Rs. 301 crore.

• PAT margin improved to 21% from 19% last year.

Financial highlights

• Revenue from operations reached Rs. 1,145 crore, up from Rs. 1,021 crore year-over-year.

• EBITDA stood at Rs. 330 crore, a 22% increase; EBITDA margin at 29%.

• Net profit grew 18% to Rs. 246 crore, with net margin at 21%.

• Gross margin improved to 77%, up 200 bps, attributed to higher branded generics share.

• Free cash flow for the quarter was Rs. 301 crore.

Outlook and guidance

• Revenue expected to grow in low teens for FY2025, with mid-teen growth in branded generics, mid-single digit in US, and degrowth in Africa institutional.

• Gross margin guidance at 75-76%, with possible 1% variation due to product mix.

• EBITDA margin expected to remain around 29% ±1% for FY2025.

• R&D expenses projected at 5% of revenue for the year; Q1 R&D at 4.5%.

• Management targets new launches, market expansion, and cost optimization as growth levers.