Ajanta Pharma (AJANTPHARM) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue rose 15% year-over-year to INR 1,187 crore; H1 FY25 revenue up 14% to INR 2,332 crore.

• Net profit for Q2 FY25 increased 11% to INR 216 crore; H1 FY25 PAT up 15% to INR 462 crore.

• Branded generics contributed 76% of Q2 sales, with strong growth in India, Asia, and Africa.

• Cash conversion ratio reached 121% in H1 FY25, reflecting improved working capital cycle.

• Interim dividend of INR 28 per share declared, totaling INR 350 crore; total payout for FY25 so far is INR 701 crore, representing 90% of H1 cash flow from operations.

Financial highlights

• Q2 FY25 gross margin improved to 78% from 75% in Q2 FY24; H1 gross margin at 77%, up 200 bps from FY24.

• Q2 FY25 EBITDA was INR 311 crore (26% margin, +7% YoY); H1 EBITDA at INR 642 crore (28% margin, +12% YoY).

• H1 FY25 consolidated revenue up 14% YoY to INR 2,332 crore; net profit up 15% to INR 462 crore.

• CapEx in H1 was INR 130 crore; full-year estimate is INR 200 crore.

• ROCE at 34% and RONW at 26% as of September 2024.

Outlook and guidance

• Branded generics expected to deliver mid-teen growth for FY25; US generics to see low- to mid-single digit growth.

• EBITDA margin guidance for FY25 is 28% ±1%.

• Gross margin expected to remain in the 77% range, with 50-100 bps quarterly variation.

• India business growth expected at 9-10% going forward.

• Focus on new product launches, market expansion, and cost optimization to drive future growth.