Ajanta Pharma Limited — Q1 FY25
Ajanta Pharma delivered a strong Q1 FY25 with revenue of INR 1,145 crore (+12% YoY) and EBITDA of INR 330 crore (+22% YoY), driven by branded generics growth of 17%.
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.
91%Questions answered0Evaded / deflected11Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Revenue trend for Africa branded generic business
Asked by Abdulkader Puranwala, ICICI Securities
Gave historical average and blended guidance but not a specific trend for Africa alone.
gave historical average but not specific forward trendreframed to blended guidance
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Question
So going ahead, you know, what is the kind of revenue trend rate we should see in this particular segment?
Yogesh Agrawal, Managing Director
our average rate was around INR 155 crore to INR 160 crore. As I think we've given the guidance, for the blended branded generics business across India and across all the international markets, we are looking to post a mid-double-digit growth.
Partial answer
Medium priority
Measures taken to improve working capital
Asked by Abdulkader Puranwala, ICICI Securities
Mentioned improvement in receivables but no details on specific measures or policy changes.
no specific measures or policy changes mentioned
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Question
would you like to highlight some measures what you've taken to cut down on your working capital or some change in policy which has led to this kind of an improvement?
Arvind Agrawal, CFO
the receivable is something where we have been able to achieve some improvement, especially on the U.S. side. And this is where we are getting reflected in the cash accrual.
Answered
High priority
Reason for conservative gross margin guidance
Asked by Abdulkader Puranwala, ICICI Securities
Provided specific reason for conservative guidance: potential mix shift.
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Question
any reason why we are being little conservative here on guiding for the gross margins when we're already about the threshold as compared to what we are guiding?
Arvind Agrawal, CFO
the contribution of branded generic of 77% may reduce as we go forward, with higher contribution from U.S. or institutional business. So in that case, this variation can take place.
Answered
Medium priority
Employee expense run rate going forward
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Confirmed the analyst's estimate.
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Question
You should be broadly INR 250 crore ± per quarter sort of an employee expense in the coming quarters?
Arvind Agrawal, CFO
You are right.
Answered
High priority
What is holding back better EBITDA margins?
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Explained that low expenses in Q1 will normalize, keeping margins in range.
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Question
So what is holding us back, for, you know, the forthcoming quarters or full year et cetera, in the time from having a better profitability or the better margins?
Arvind Agrawal, CFO
the expenses were very low in the first quarter. I think as we go along, the expenses will pick up, the other expenses. So the, in that case, our expectation is that the EBITDA margin should be in this range or ±1%.
Answered
Low priority
Trade business revenue for India this quarter
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Provided exact figure.
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Question
And so how much was the trade business for the quarter in India?
Arvind Agrawal, CFO
it was INR 41 crore, this quarter, as against INR 36 crore in the last year, same quarter.
Answered
High priority
Price erosion trend in US base business
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Clearly stated price erosion is stable at high single digit.
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Question
how are you seeing the base business in, as far as U.S. is concerned, is the price erosion sort of stable at, say, mid-single-digit, or is getting higher?
Yogesh Agrawal, Managing Director
price erosion is stable. It remains to be in the high single digit. There is no aggressive price erosions or any kind of kinks are there.
Answered
High priority
Is Africa growth this quarter due to channel filling?
Asked by Gagan Thareja, ASK Investment Managers
Confirmed spillover from previous quarter.
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Question
Is there something of a similar nature in this quarter?
Yogesh Agrawal, Managing Director
this quarter looks a bit elevated because some of the sales of the last quarter got factored in, it got accounted in this quarter.
Answered
High priority
Mid-teens growth across all branded generic markets?
Asked by Gagan Thareja, ASK Investment Managers
Clarified that guidance is for emerging markets only, not India.
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Question
will it be mid-teens across all the three markets, India, Africa, and Asia, or are we, you know, sort of seeing different numbers?
Yogesh Agrawal, Managing Director
We are giving the mid-teen growth guidance for the branded generics in emerging markets, which is Africa plus Asia. That does not include India.
Answered
High priority
Impact of freight costs on margins
Asked by Gagan Thareja, ASK Investment Managers
Quantified the expected impact.
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Question
Are freight costs in any way, you know, impacting you in 1Q, or do you foresee them impacting you going ahead on a year-on-year basis?
Yogesh Agrawal, Managing Director
we would be adversely impacted by INR 30 crore in the freight cost as compared to the full year last year and current year last year.
Answered
Medium priority
Sales force addition plans for this year
Asked by Gagan Thareja, ASK Investment Managers
Provided specific percentages and timing.
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Question
In terms of sales force addition, what are your, you know, planned additions this year in India and the other markets?
Yogesh Agrawal, Managing Director
In India, there is no increase in the sales force we are estimating. In the emerging markets, we could have an increase of the sales force of about 8%-10%.
Answered
Medium priority
Capacity utilization across plants
Asked by Gagan Thareja, ASK Investment Managers
Provided a clear range.
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Question
And finally, what is your capacity utilization? You know, a broad sort of indicative number.
Arvind Agrawal, CFO
About 60%-65% across the plants.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Africa branded generic average revenue INR 155-160 crore per quarter | ₹155 cr | ₹1,145 cr | Understated vs filing |
| Trade business revenue INR 41 crore in Q1 | ₹41 cr | ₹1,145 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.