Ajanta Pharma (AJANTPHARM) Q4 18/19 earnings summary

Executive summary

• FY19 revenue declined as expected contraction in African anti-malarial institutional sales was partly offset by growth in India and the US.

• Diversified markets and product launches supported resilience; operating cash flow funded the full FY19 capex internally.

Financial highlights

• Consolidated revenue from operations was ₹2,055 crore vs ₹2,131 crore in FY18, a stated 4% decline; PAT fell 17% to ₹387 crore.

• EBITDA was ₹566 crore, 28% of operating income vs ₹648 crore and 31% in FY18; lower revenue, higher employee costs and new-plant overheads weighed on margins.

• Consolidated PBT was ₹514 crore vs ₹623 crore; basic EPS was ₹43.97 vs ₹53.26.

• Operating cash flow was ₹375 crore vs ₹281 crore in FY18; consolidated capex on PPE and advances was ₹343 crore.

Outlook and guidance

• US pipeline plans call for 10–12 ANDA filings annually and 8–10 product launches in FY20.

• FY20 capex is planned at ₹350 crore, mainly for Guwahati, Pithampur and the Mumbai corporate office.

• Guwahati and Pithampur construction will continue to pressure EBITDA in FY20; management expects the burden to normalise over the next 2 years as approvals and volumes rise.