AJANTA PHARMA LIMITED
Q3 FY 21 RESULTS ANALYSIS
About Ajanta Pharma Limited
Ajanta Pharma is a speciality pharmaceutical formulation company having branded generic business in India and emerging markets, generic business in US and institution business in Africa.
Many of company’s products are 1st to market and are leading in their sub-therapeutic segments.
Company’s state of the art R&D centres for formulation development and API are located at Mumbai.
Company has 8 world class manufacturing facilities located in India and Mauritius.
Recently Company has commercialised its sterile eye drops manufacturing block at Guwahati.
For last 10 financial years, company has posted healthy performance with its consolidated total income growing at 20% CAGR and net profit at 28% CAGR.
Q3 FY 2021 performance highlights (compared to Q3 FY 2020)
Revenue from operations at Rs. 749 cr. against Rs. 651 cr.; up 15%.
· EBITDA at Rs. 242 cr. against Rs. 186 cr.; up 30%; EBITDA at 32% of revenue from operations.
Profit after tax at Rs. 177 cr. against Rs. 108 cr.; up 64%; PAT at 24% of revenue from operations.
9 Months FY 2021 performance highlights (compared to 9 Months FY 2020)
Revenue from operations at Rs. 2,133 cr. against Rs. 1,906 cr., up 12%.
EBITDA at Rs. 747 cr. against Rs. 532 cr.; up 41%; EBITDA at 35% of revenue from operations.
Profit after tax at Rs. 495 cr. against Rs. 339 cr., up 46%; PAT at 23% of revenue from operations.
India
Q3 FY 2021, India sales was Rs. 220 cr. (against Rs. 195 cr.), up 13%.
9M FY 2021, India sales was Rs. 595 cr. (against Rs. 592 cr.), up 1%.
As per Iqvia MAT December 2020, we have posted healthy growth of 13% in Cardiology (segment growth of 14%), 2% de-growth in Ophthalmology (segment de-growth of 3%), 3% growth in Dermatology (segment growth of 4%) and 14% growth in Pain Management (segment de-growth of 1%).
Exports
Q3 FY 2021, total export sales were Rs. 524 cr.(against Rs. 448 cr.) posting growth of 17%.
Segment wise break-up is given below:
Emerging market
branded generic Sale was Rs. 286 cr. against (Rs. 240 cr.) posting 19% growth.
US Generic Sale was Rs. 161 cr. (against Rs. 159 cr.) posting 1% growth.
Africa Institution Sale was Rs. 77 cr. (against Rs. 49 cr.) posting 58% growth.
9Months FY 2021, total export sales were Rs. 1,506 cr. (against Rs. 1,300 cr.) posting growth of 16%. Segment wise break up is given below:
Emerging market
branded generic Sale was Rs. 851 cr. against (Rs. 726 cr.) posting 17% growth.
US Generic Sale was Rs. 464 cr. (against Rs. 372 cr.) posting 25% growth.
ANDA Status as on 31-Dec-2020
Cumulative Approvals (incld. TAs) 42
Commercialised 36
Under Approval 18
Approvals (FY2021) (incld. TAs) 9
Filing (FY 2021) 2
TA – Tentative approval
Africa Institution Sale was Rs. 191 cr. (against Rs. 202 cr.) posting 5% de-growth.
R&D
During Q3 FY 2021, R&D expenses were Rs. 40 cr., (Q3 FY 2020 Rs. 35 cr.) which is 5% of revenue from operations.
During 9 Months FY 2021, R&D expenses were Rs. 100 cr. (9 Months FY 2020 Rs.114 cr.) which is 5% of revenue from operations.
INVESTORPRESENTATION
Q3 FY 2021 2ND FEBRUARY 2021
Content
1.India Business2.Global Business 3.Infrastructure 4.Financial Highlights
1.INDIA BUSINESS
INDIA BRANDED GENERICS
15 Divisions for 4 segments
270+ Product Basket
1st to Market Products
3,000+ MRs = Building Efficiency
Continue to Focus on 4 Therapeutic Segments
· Dermatology : Growth recovering (3% Growth)
· Pain Management : Consistently Performing well (14% Growth)
· Cardiology : Growth Recovering (13% Growth)
· Ophthalmology : 2nd largest in India (-2%)
· Overall Pharma Market in Dec 20 : 5% Growth for Ajanta; 4% for IPM
·
INDIA SALES : 220 CR(13%) IN Q3 FY 21; 595 CR IN 9M(1%)
India Ranking : Opthal :2; Derma : 15; Cardio : 18; Pain :34; Overall Ajanta : 29;
GLOBAL BUSINESS :
Branded Generic Emerging Markets:
Product Registration : 1300+
Countries across Asia & Africa : 29
Customised Product Market : 200+
Broader Therapeutic Segments
Anti Malaria; Antibiotics;Gynecology; Vitamins; Gastro;Anti-Histamines; Respiratory;Neurology; Ophtholmology; Pain
USA
42 Final Approvals; 9 in 9M FY 2021; 18 under approval36 products on shelf;3 products launched in Q3; Focus on sound execution for customer delight;
Export Sales in Q3 Consolidated :
From 448 cr to 524 Cr;YoY; 17% up Total Exports;
Branded Generics :240 cr to 285Cr 19% Up;
US Generics from 159 Cr to 161 Cr; 1% up YoY
Institution : 49 cr to 77 cr 58% Up
Total Consolidated Sales - Q3
India 13% Up YoY from 195 cr to 220 Cr (1% in 9M)
Exports 17% Up YoY from 448 Cr to 524 Cr (16% in 9M)
Total Sales 35% Up YoY from 643 Cr to 744 Cr(11% in 9M)
Overall - India Growth 13%;Exports Growth 17% and Total sales growth is 17%
3.INFRASTRUCTURE
Formulation Mfg :
3 facilities in Aurangabad MH;
1 at Dahej,Guj; 1 at Guwahati;
1 at Pithampur, MP;
1 At Mauritiuous
API Mfg :
1 at Waluz, Aurangabad, MH (Captive consumption)
R&D :Rs.40 CR (5%) in Q3; Rs.100 Cr in 9 M(5%)
R&D spend excl Capex was 164 CR(6%) in FY 2020.
4. FINANCIAL HIGH LIGHTS :
Q3 consolidated FY 2021
Exports : 524 cr (17% Up)
Domestic : 220 cr (13% Up)
Revenue from operations : 749 Cr (15%Up YoY
EBITDA : Rs.242 Cr; 30% up
PBT : 215 Cr; 23% Up
PAT : 176 Cr; 64% Up
Total Comprehensive Income : 176 Cr ; 61%
PAT is 24% of Total Income
5 Year Track Record : (Consolidated )
Total Income has grown from 1771 Cr(2016) to 2026 (2017) to 2155 cr (2018);to2076 cr(2019); to 2680 Cr (2020)
PAT has grown from 416 cr(2016) to 507 cr(2017);to 469 Cr (2018); to 367 cr(2019) to 468 cr(2020)
PAT Margin was 24%(2016);26%(2017); 22%(2018); 19%(2019);18%(2020)
ROCE WAS 43%(2016); 40%(2017);29%(2018); 22% (2019); 22% (2020)
|
Ajanta Pharma (in Rs. Cr.) |
Dec '20 |
Sep '20 |
Jun '20 |
Mar '20 |
Dec '19 |
YOY |
QOQ |
|
Net Sales |
748.74 |
715.91 |
668.2 |
681.96 |
651.21 |
14.98 |
4.59 |
|
Raw Materials |
192.06 |
188.63 |
153.87 |
173.53 |
138.34 |
38.83 |
1.82 |
|
P/L Before Tax |
215.47 |
249.24 |
206.69 |
175.86 |
175.1 |
23.06 |
-13.55 |
|
Tax |
38.84 |
79.02 |
58.93 |
46.7 |
67.55 |
-42.5 |
-50.85 |
|
FINAL NPT |
176.63 |
170.22 |
147.76 |
129.16 |
107.55 |
64.23 |
3.77 |
|
Equity |
17.39 |
17.54 |
17.54 |
17.54 |
17.54 |
-0.86 |
-0.86 |
|
Basic EPS fv 2 |
20.41 |
19.51 |
16.93 |
14.8 |
12.33 |
65.53 |
4.61 |
MP 1775.1
PE 21.74
52 Week Range
961
1,878.00
L H
Volume
95,730
Book Value Per Share 300.26
Shareholding Pattern
Promoters unpledged 0.89% of shares in last quarter. Total pledge stands at 15.17% of promoter holdings
Promoters have decreased holdings from 70.51% to 70.34% in Dec 2020 qtr
Mutual Funds have decreased holdings from 9.93% to 9.78% in Dec 2020 qtr
Number of MF schemes decreased from 17 to 16 in Dec 2020 qtr
FII/FPI have increased holdings from 7.71% to 7.9% in Dec 2020 qtr.
Number of FII/FPI investors decreased from 185 to 184 in Dec 2020 qtr
Price Performance
1 Week -1.81%
1 Month 3.13%
3 Months 16.13%
YTD 8.69%
1 Year 22.81%
3 Years 31.46%
|
Yearly Results of Ajanta Pharma (in Rs. Cr.) |
Mar '20 |
Mar '19 |
Mar '18 |
Mar '17 |
Mar '16 |
|
Total Income |
2,587.87 |
2,055.37 |
2,130.86 |
2,001.64 |
1,727.53 |
|
Raw Materials |
560.33 |
391.84 |
378.28 |
377.85 |
400.09 |
|
Net P/L |
467.7 |
386.97 |
468.64 |
506.83 |
401.41 |
|
Equity |
17.54 |
17.54 |
17.69 |
17.69 |
17.69 |
|
Reserves |
2,580.86 |
2,226.57 |
2,023.68 |
1,550.00 |
1,173.17 |
|
Basic EPS |
53.6 |
43.97 |
53.26 |
57.59 |
45.62 |
|
Diluted EPS |
53.6 |
43.96 |
53.25 |
57.58 |
45.61 |
STRENGTHS
Company with high TTM EPS Growth
High Piotroski Score with High Return on Equity (ROE) and EPS Growth
Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
Company with Low Debt
Increasing profits every quarter for the past 4 quarters
Increasing Revenue every quarter for the past 2 quarters
Strong cash generating ability from core business - Improving Cash Flow from operation for last 2 years
Book Value per share Improving for last 2 years
Company with decreasing Promoter pledge
FII / FPI or Institutions increasing their shareholding
Near 52 Week High
WEAKNESSES
MFs decreased their shareholding last quarter
Inefficient use of assets to generate profits - ROA declining in the last 2 years
Promoter decreasing their shareholding
OPPORTUNITIES
Brokers upgraded recommendation or target price in the past three months
Positive Breakout First Resistance ( LTP > R1)
THREATS
Upcoming Results for Nifty500 with Declining Share Price Over the Week
Increasing Trend in Non-Core Income
Insiders sold stocks
No comments:
Post a Comment