Ajanta Pharma (AJANTPHARM) Q4 16/17 earnings summary

Executive summary

• FY17 consolidated total income reached ₹2,026 cr, up 14% YoY; net profit rose 22% to ₹507 cr.

• Growth reflected strong U.S. execution and continued India expansion, while currency devaluation and restrictions weighed on emerging markets.

• Strategy prioritised differentiated products, focused therapeutic areas, market-specific portfolios and expanded R&D and manufacturing capacity.

Financial highlights

• Consolidated revenue from operations increased 14% to ₹2,002 cr; EBITDA rose 19% to ₹701 cr and PAT increased 22% to ₹507 cr.

• Consolidated PBT was ₹648 cr versus ₹559 cr; basic EPS advanced to ₹57.59 from ₹47.23.

• Material costs declined to 21% of revenue from 24%; other expenses rose to 30% from 28%, partly due to higher R&D spending and foreign-currency losses.

• Operating cash flow was ₹608 cr versus ₹326 cr; capital expenditure on property, plant and equipment was ₹301 cr.

Outlook and guidance

• FY18 plans called for 12–15 U.S. ANDA filings and 12–15 first-time product launches in India.

• Further U.S. launches were planned for FY18; the pipeline included 15 ANDAs awaiting approval at year-end.

• Priorities included strengthening specialty leadership in India, reviving emerging-market growth, scaling new plants and improving R&D and plant productivity.