Ajanta Pharma Limited — Q1 FY24
Ajanta Pharma reported a solid Q1 FY24 with consolidated revenue of ₹1,021 crore (+7% YoY) and EBITDA margin of 26% (+300 bps YoY), driven by gross margin expansion from softer...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
42%Questions answered6Evaded / deflected12Questions auditedMixedNumbers vs filing
Evasive
High priority
Revenue and margin target for next 3-4 years.
Asked by Saumya Garg, Shree Investments
Management declined to provide 3-4 year targets, only gave next year guidance.
refused long-term guidanceonly gave short-term
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Question
The question is regarding the target which you have set for, say, next 3- to- 4- years for the company, in terms of revenue as well as margin.
Arvind Agrawal, CFO
See, the 3-4- years is a very little long-term thing, and I think we will not be able to give you the guidance on that. The only thing which we talked generally was that we are expecting mid-teen growth for the next year.
Evasive
Medium priority
Directional revenue and margin trajectory.
Asked by Saumya Garg, Shree Investments
Management gave only a vague positive direction without any specifics.
no numbers givenvague positive direction
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Question
Directionally, what kind of revenue and margin trajectory we should look at? I'm not looking for specific guidances, but more of a direction.
Arvind Agrawal, CFO
As we mentioned earlier, also in Q4, I think the direction is absolutely positive because all the, you know, the levers are there. Branded Generic business is growing, so naturally the direction has to be positive.
Evasive
Medium priority
Big opportunity for revenue increase in next couple of years.
Asked by Rajeev Agarwal
Management did not identify any specific big opportunity, only general factors.
no specific opportunity citedgeneralized answer
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Question
My question was regarding for next couple of years, any big opportunity you are looking at for increasing revenue?
Yogesh Agrawal, Managing Director
I think it's a culmination of a lot of things coming together... There is no one single thing which we can point out and say that, you know, one big thing will happen like this.
Evasive
Medium priority
Any big product launch lined up in next couple of years.
Asked by Rajeev Agarwal
Management declined to name any specific big product launch.
refused specific product detailsgeneralized
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Question
Any big product launch, lined up in the couple of years can be a big opportunity for the company in terms of market size?
Yogesh Agrawal, Managing Director
I can't give you anything specific like that, but as I said, in general, all the products which you'll file in USA, let's say, eight this year, they will get approval next year.
Partial answer
High priority
Directional mid-teen growth for couple of years?
Asked by Rajeev Agarwal
Management confirmed directionally but refused to give a formal long-term guidance.
only confirmed directionallyno long-term guidance
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Question
Directionally, you are talking about around mid-teens kind of growth for a couple of years down the line?
Yogesh Agrawal, Managing Director
You can say directionally, yes, but we don't give out that long guidances. Normally, we just say that, the current, next year, which is current year now. This is the guidance mid-teens we are giving.
Answered
High priority
Margin trajectory for current year.
Asked by Rajeev Agarwal
Management gave a specific EBITDA margin guidance of around 25%.
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Question
What about the margin trajectory?
Yogesh Agrawal, Managing Director
Should remain in the similar vicinity of what we have said for the current year. EBITDA at, we've guided around 25 points. It's %. Around there is what we are looking at, maintaining.
Evasive
High priority
U.S. business outlook for next 2-3 years.
Asked by Rajeev Agarwal
Management declined to provide 2-3 year outlook, only discussed Q1.
refused long-term guidanceonly gave Q1 growth
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Question
Okay, what kind of U.S. business you can look for in next 2, 3 years?
Yogesh Agrawal, Managing Director
Two, three years, I think, as I said, is a little far away. We don't give out the guidances that way. I think current year we have started off very well in the Q1. We have posted a healthy growth of 17% odd.
Answered
High priority
Change in U.S. capital allocation plan due to supply disruptions.
Asked by Rushee Shetty, Go-Lokal Capital
Management clearly stated no change in plan, no additional CapEx needed, and judicious OpEx.
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Question
Now, U.S., you know that because of the waiting price erosion and the opportunities are improving due to the supply disruption and all, is the plan changing and we would focus on U.S. also, or, you know, we still stick to the same plan?
Yogesh Agrawal, Managing Director
No, you rightly said, the U.S. is an evolving landscape scenario, has turntables now... CapEx we don't need to do because we have enough capacities... OpEx is what we were saying, that we will be very judicious about for the U.S. market.
Answered
High priority
Current price erosion in U.S. business.
Asked by Rushee Shetty, Go-Lokal Capital
Management gave a specific range: high single digits, around 8%.
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Question
Any improvement in the price erosion which you have seen? I remember that the last quarter of, you said that the price erosion in high double digits. What is the price erosion currently in this quarter?
Yogesh Agrawal, Managing Director
No, it has, thankfully, it has stabilized quite a lot. We are seeing that into the high single digits, as a average, price erosion. Yeah, that has, come down in a normal range.
Partial answer
High priority
Update on varenicline, topiramate, and Chantix launches.
Asked by Rushee Shetty, Go-Lokal Capital
Management gave updates on varenicline and Chantix but declined details on topiramate due to confidentiality.
confidentiality on topiramateno timeline for Chantix
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Question
Can you give any update on the varenicline launch, and your update on topiramate and Chantix products? What is happening over there?
Yogesh Agrawal, Managing Director
Three products you asked for. First one is the varenicline, that is already commercialized. The second is Chantix, that is work in progress... The third one, the topiramate. That is... I think, we are bound by the some confidentiality.
Evasive
Medium priority
Impact of medical price cuts on domestic business growth.
Asked by Kunal Randeria, Nuvama Wealth Management
Management did not provide the impact number, said it could be shared later.
no exact figuredeferred to later
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Question
In the domestic business, 14% growth, could you just share how much of that growth was impacted due to medical price cuts in the last quarter?
Yogesh Agrawal, Managing Director
Medical price cut, we have not calculated the exact impact. The overall impact, we have been able to nullify by way of the growth in volumes... That figure can be worked out and shared with you at a later date.
Answered
High priority
Aspirational outlook for domestic business.
Asked by Kunal Randeria, Nuvama Wealth Management
Management gave a specific growth range of 10-12% for domestic business.
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Question
Maybe you would like to share maybe slightly aspirational outlook for the next couple of years from this business?
Yogesh Agrawal, Managing Director
Aspirationally, going forward, I expect it to grow in low double-digit number itself, maybe, between 10% and 12%. That's what we aim for.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Q1 US revenue INR 214 crore, 17% growth | ₹214 cr | ₹1,021 cr | Understated vs filing |
| EBITDA margin guidance around 25% for current year | 25% | 26% | Understated vs filing |
| Domestic business growth 14% in Q1 | 14% | 7% | Overstated vs filing |
| US business growth 19% in Q1 | 19% | 7% | Overstated vs filing |
| Africa branded revenue INR 168 crore in Q1 | ₹168 cr | ₹1,021 cr | Understated vs filing |
| Asia sales growth 6% in Q1 | 6% | 7% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.