Ajanta Pharma (AJANTPHARM) Q4 13/14 earnings summary

Executive summary

• Differentiated strategy centered on niche, patient-focused branded generics across India and pharmerging markets; more than 80% of revenue came from branded generics.

• Consolidated revenue grew 30% in FY14, while EBITDA rose 64% and PAT increased 109%, supported by existing brands, new launches and higher currency realisations.

• Five-year revenue and bottom-line CAGRs were 30% and 62%, respectively; the strategy emphasized profitable, sustainable growth and continued R&D investment.

Financial highlights

• Consolidated net revenue was ₹1,208.34 crore versus ₹930.84 crore in FY13, up 29.8%; total revenue was ₹1,222.05 crore versus ₹936.44 crore.

• EBITDA was ₹368.75 crore, up 64%; PAT was ₹233.88 crore, up 109%, versus ₹112.11 crore in FY13.

• Standalone revenue from operations rose to ₹1,109.92 crore from ₹839.20 crore; standalone PAT reached ₹220.86 crore versus ₹101.12 crore.

• Cash generated from consolidated operations was ₹306.15 crore; net cash from operating activities was ₹212.41 crore.

Outlook and guidance

• Management targeted at least six US ANDA filings annually; it estimated 10–12 FDA product approvals within three years and expected US business to contribute meaningfully to volume and profitability.

• Continued R&D, product registrations, new product development and manufacturing expansion were identified as priorities to sustain growth momentum.

• Two Gujarat manufacturing facilities were under development; capital contracts pending execution, net of advances, totaled ₹48.06 crore at March 31, 2014.