AJANTA PHARMA LTD - QUARTERLY RESULTS - Q2 FY 2015 (SEP-2014) - Revenue up 21% YoY; Net Profit Up 43% YoY

AJANTA PHARMA LTD

MANNALAL AGARWAL, CHAIRMAN

QUARTERLY RESULTS

Q2 FY 2015 (SEP-2014)

Highlights of Q2 FY '1 5 vis-a-vis Q2 FY '14

standalone financial performance

Ø Revenue from operations grew 21% at Rs. 337 Cr against Rs. 280 cr.

Ø EBITDA growth of 32% at Rs. 111 cr. against Rs. 84 cr.

Ø EBITDA at 33% of revenue.

Ø Profit before Tax at Rs. 113 cr. against Rs.79 cr., a growth of 43%.

Ø Profit after Tax grew 41% at Rs.79 cr. against Rs. 56 cr.

Ø PAT at 23% of revenue.

Ø Exports contributed 64% of the revenue for the quarter

RESULTS TABLE:

Ajanta Pharma	30-09-14	30-06-14	Dif% QoQ	31-03-14	31-12-13	30-09-13	Dif% YoY
Net Sales	33118.4	28079	17.95	30114	29259	27075	22.32
Total Expenditure	23874.62	20983	13.78	21539	21312	20466	16.66
Profit  before Interest, Dep. & Taxes	9243.78	7096	30.27	8575	7947	6609	39.87
Net Profit	7862.77	5872	33.9	7009	6242	5581	40.88
Diluted EPS	22.33	16.68	33.87	19.91	17.72	15.86	40.79
Total Income	33728.75	28749	17.32	31105	30085	27983	20.53
Changes in inventories	-1966.43	1248	-257.57	-3157	-469	2726	-172.14
Cost of materials	10342.4	5782	78.87	10586	8602	5716	80.94
stock-in-trade	1288.46	1001	28.72	1443	1014	851	51.41
Employee benefits	4450.44	4284	3.89	3767	3838	3735	19.16
Depreciation	1219.51	1204	1.29	1489	949	899	35.65
Other expenses	8540.24	7464	14.42	7411	7378	6539	30.6
Total expenses	23874.62	20983	13.78	21539	21312	20466	16.66
Profit before tax	11308.56	8493	33.15	9650	8958	7926	42.68
Tax Expenses	3445.79	2621	31.47	2641	2716	2345	46.94
Net Profit	7862.77	5872	33.9	7009	6242	5581	40.88
Face Value of Share (in )	5	5	0	5	5	5	0
Paid-up Equity	1767.63	1768	-0.02	1767	1767	1767	0.04
Reserves	51867.06	0		0	0	0
Basic EPS	22.35	16.7	33.83	19.94	17.75	15.88	40.74
Diluted EPS	22.33	16.68	33.87	19.91	17.72	15.86	40.79
Public holding (%)	26.17	26.45	-1.06	26.4	26.4	26.4	-0.87

Highlights 

 H1 FY'15 vis-a-vis H1 FY'!4

Ø Revenue from operations grew 25% at Rs. 625 cr. against Rs. 498 cr..

Ø EBITDA growth of 49% at Rs. 200 cr. against Rs. 135 cr.

Ø EBITDA at 32% of revenue

Ø Profit before Tax at Rs. 198 cr. against Rs. 127 cr., a growth of 56%.

Ø Profit after Tax grew 55% at Rs. 137 Cr against Rs. 88 cr.

Ø PAT at 22% of revenue.

Ø Exports contributed 61% of the total operating income for the half year

Commenting on the results, Mr.Yogesh Agrawal, Managing Director said "We are pleased to add yet another strong quarter in the current financial year. Our business performance remained aligned to our plans in all the markets that we operate in. Our consistent focus on High Quality business and improvement in efficiencies has led to higher margins. We are continuously making the required investments in infrastructure manufacturing facilities and R&D, anticipating tomorrow's requirements.”

 

YOGESH AGARWAL,MD

India Business : Accelerated Growth

For the 2^nd quarter, overall India Business was Rs.115 cr., up 19% over Q2 last year. Out of this, Indian Pharmaceutical business was Rs.103 cr. posting healthy growth of 11%. Institution sales was Rs. 12 cr posting de-growth of 36% over previous year quarter. During the quarter, 6 new products were were launched, out-of-which 3 were first to market.

For the first half, sales was Rs. 234 cr., up by 21% over same period last year. Out of this, lndian Pharmaceutical Market (lPM) business was R.s. 211 cr. posting healthy growth of 34% as against the industry growth of 11%. Institution sales was Rs.23 cr., posting de-growth of 36% over previous year 1^st  half. In the three major therapeutic segments where we operate, we have posted robust growth of 26% in Dermatology, 44% in Cardiology and 30% in Opthalmology (lMS MAT Sep '14)

Emerging Markets : Gaining Grounds

Emerging markets grew 24% during the quarter, with sales of Rs.216 cr. Africa contributed Rs.112 cr (growth of 22%), Asia Rs.101 cr. (growth of 32%) and Latin Rs.3 cr (de-growth of 47%).  During the quarter, company launched 12 new products in emerging markets.

In the first half, emerging markets grew 28% with sale of Rs.376 cr. Africa contributed Rs.204 cr. (growth of 30%, Asia Rs.166 cr. (growth of 30%) Latin America Rs.6 cr (de-growth of 30%).

Company continues to strengthen its brand presence in various emerging markets it operates in. Company has a pipeline of about 1700 products under registration paving the way for sustained growth in these markets.

Regulated Markets

company's re-launch of its first product gained momentum during the quarter. Company has 23 ANDAs under review with US FDA.

R&D

R&D expenses for the quarter were Rs.19 cr. (Rs.13 cr), while for the first Half, it were Rs.30 cr.(Rs.74 cr.). Ajanta continues to invest in its R&D infrastructure on continuous basis to meet the business requirements.

About Aianta Pharma

Ajanta Pharma – a specialty pharmaceutical formulation company has a well-established Branded generic business in India And emerging markets.

It has leading brands in therapeutic segments of ophthalmology, Dermatology, Cardiology and pain management in India.

In Emerging markets, company has customized product basket with wider therapeutics presence. Many Of company's products are first in  the market place and are leading in their sub therapeutic segments.

The company is now building a portfolio of ANDAs for the regulated markets of USA and has has recently entered this market with its maiden product.

Company's state of the art R&D centre for formulation development is located at Mumbai, having a team of 350+ people.

Company has world class manufacturing facilities – 4 located in India and 1 in Mauritius. One in India is approved by USFDA, UKMHRA, pre-qualification from WHO,  apart from having approval from FDAas of many other countries. Company is setting up two more manufacturing facilities in India , one for regulated markets and another for domestic / emerging markets.

For last 5 years, company has posted healthy performance with its consolidated revenue showing a CAGR of 31% and net profit of

62%.

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