Ajanta Pharma (AJANTPHARM) Q4 14/15 earnings summary

Executive summary

• FY15 consolidated net operating revenue rose 23% YoY to ₹1,480.56 crore; PAT increased 32% to ₹309.86 crore.

• EBITDA grew 37% to ₹505.23 crore, with EBITDA margin improving to 34% from 31%.

• Exports contributed 66% of revenue; domestic and export business volumes grew 25% and 23%, respectively.

Financial highlights

• Consolidated total income was ₹1,497.36 crore versus ₹1,222.05 crore; EBITDA was ₹505.23 crore versus ₹368.75 crore.

• Consolidated PBT was ₹464.47 crore versus ₹329.85 crore; PAT was ₹309.86 crore versus ₹233.88 crore.

• Net operating revenue increased from ₹1,208.34 crore to ₹1,480.56 crore, driven by domestic volume growth of 25% and export growth of 23%.

• Material costs declined to 25% of revenue from 29%; employee expenses rose to ₹200.58 crore from ₹156.97 crore, reflecting added staff in marketing, R&D and support.

• Operating cash flow was ₹279.42 crore; capital expenditure on fixed assets and advances was ₹102.73 crore.

Outlook and guidance

• Growth plans focus on existing geographies and therapeutic areas, supported by new launches and a pipeline of 1,440 products under registration in pharmerging markets.

• 23 US ANDAs awaited approval; plans called for filing 5–6 additional ANDAs annually.

• Dahej validation batches were expected to start in the quarter beginning July 2015; an additional India and emerging-markets facility was targeted for FY17-18.

• Planned R&D investment was ₹80 crore over two years to expand and upgrade facilities; manufacturing and R&D capacity expansion was also underway.