Ajanta Pharma (AJANTPHARM) Q4 99/00 earnings summary

Executive summary

• FY ended Mar. 31, 2000 marked a shift to formulations after the bulk-drug plant sale; income rose 14% to Rs 160 crore, while the plant sale reduced profit.

• R&D and overseas brand registrations advanced, including Carofit patents in the US and South Africa and 10 additional patent filings.

Financial highlights

• Sales were Rs 15,969.51 lakh and total income Rs 15,980.71 lakh, versus Rs 13,976.86 lakh and Rs 13,987.52 lakh, respectively, in FY1998-99.

• Profit before tax was Rs 1,931.94 lakh versus Rs 2,018.91 lakh; net profit after tax was Rs 1,721.79 lakh versus Rs 2,018.41 lakh.

• Profit was reduced by the bulk-drug plant sale loss; other expenses included a Rs 214.16 lakh loss on sale of fixed assets.

• Exports grew 20% YoY, particularly branded formulations; foreign-exchange earnings were Rs 5,712.18 lakh versus Rs 4,934.77 lakh.

Outlook and guidance

• Formulations are the core focus following cessation of bulk-drug manufacturing on Feb. 11, 2000; existing investments and IPO funds were expected to support growth.

• R&D expansion in Mumbai targets cancer, antioxidants, cardiology, dermatology, diabetes, AIDS and arthritis; plans include disease-specific and patentable products.

• Kazakhstan project was nearing completion, with operations targeted for Q1 2001; product registrations and prospective exports to Kyrgyzstan and Tajikistan were also planned.