Ajanta Pharma Limited — Q2 FY25
Ajanta Pharma delivered a solid Q2 FY25 with revenue of INR 1,187 crore (+15% YoY), driven by strong branded generics growth of 20% (Asia +28%, Africa +35%).
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.
86%Questions answered0Evaded / deflected11Questions auditedMixedNumbers vs filing
Partial answer
Medium priority
Asked about other costs increase excluding FX and SG&A sustainability.
Asked by Sudarshan Padmanabhan, JM Financial PMS
Management gave half-year aggregate but did not break down the increase between SG&A and other items.
deferred to half-year viewno breakdown of cost components
Read the exchange
Question
So if you can explain, you know, whether the entire amount, you know, the increase that we see between the first and the second quarter, excluding the FX, is largely only the SG&A cost, or is there anything else?
Arvind Agrawal, CFO
So if you take a full half year, you know, that is something which is the most reasonable amount which you should consider for the expenses side. Because as against INR 534 crores last year, we have spent about INR 616 crores.
Answered
High priority
Asked about volume growth and MR expansion strategy.
Asked by Sudarshan Padmanabhan, JM Financial PMS
Management provided a clear comparison to industry and expressed confidence in continued outperformance.
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Question
How do you see the volume growth, you know, for yourself, you know, say, in the next few quarters and few years?
Rajesh Agrawal, Joint Managing Director
We are growing at one point five times the industry volume growth. ... I think we should be able to continue to perform better than the IPM in the volume growth, even in the coming few quarters.
Answered
High priority
Asked about sustainability of 16% India business growth.
Asked by Foram Parekh, BOB Capital
Management clarified the 16% was for cardio only and confirmed 9-10% overall run rate.
Read the exchange
Question
So I just wanted to understand, how sustainable is this 16% growth?
Yogesh Agrawal, Managing Director
Absolutely. Absolutely. That's correct. ... overall, we should expect 9%-10% kind of run rate going forward.
Answered
Medium priority
Asked about growth drivers in Asia region.
Asked by Foram Parekh, BOB Capital
Management listed specific drivers: market share, new launches, and field force additions.
Read the exchange
Question
If you could just explain, what is going right, I mean, what is strengthening our growth in the Asia region?
Yogesh Agrawal, Managing Director
It's increase in the market share on the existing products, and there have been new product launches which we have done. And also we've added the people.
Partial answer
High priority
Asked about US business strategy and expected run rate.
Asked by Ankush Mahajan, Axis Securities
Management gave qualitative guidance but did not quantify run rate beyond 'slightly higher'.
no specific run rate numberdeferred to next year
Read the exchange
Question
What kind of run rate that we can look, and what are the new launches that we can expect in the US market?
Yogesh Agrawal, Managing Director
U.S., for the current year, will be a single digit type of growth. ... we will be looking to launch around four products. ... next year onwards, hopefully, we have more approvals.
Answered
High priority
Asked about second half revenue growth and branded generic guidance.
Asked by Abdulkader Puranwala, ICICI Securities
Management reaffirmed mid-teen branded generic growth guidance for the full year.
Read the exchange
Question
Could you help us understand where, how should your second half of fiscal twenty-five look like?
Yogesh Agrawal, Managing Director
We feel that we are on course to deliver that kind of numbers for the branded generic business. ... for the whole year, I think we feel comfortable in giving the guidance of the mid-teen.
Declined
Low priority
Asked about Asia business breakdown by country.
Asked by Kunal Randeria, Axis Capital
Management explicitly declined to provide country-level breakup.
refused to provide breakdown
Read the exchange
Question
Has the non-Philippines, non-Iraq contributed a lot more than the normal?
Yogesh Agrawal, Managing Director
Sir, we don't give you a breakup of the Asia. It's a combination of that. It doesn't really matter.
Answered
Medium priority
Asked about dividend implying no inorganic activity.
Asked by Kunal Randeria, Axis Capital
Management confirmed no current plans but left future possibility open.
Read the exchange
Question
I should assume that there is no inorganic activity on the horizon?
Rajesh Agrawal, Joint Managing Director
Inorganic activity, as of now, well, clearly, we don't have anything, so, but we can't rule it out for the future.
Partial answer
Medium priority
Asked about gross margin improvement and sustainability.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Management cited product mix but did not explain the specific improvement drivers.
attributed to mix without quantification
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Question
The gross margin has improved by at least 130 basis points. So if you could, you know, help us clarify that.
Arvind Agrawal, CFO
It depends on the product mix, actually. ... variation can be there of 50-100 basis points, depending on the, you know, product mix which is there.
Answered
High priority
Asked about EBITDA margin guidance for FY25.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Management clearly restated the 28% +/-1% EBITDA margin guidance.
Read the exchange
Question
I just missed on the EBITDA margin guidance of full year twenty-five, if you could repeat, please.
Yogesh Agrawal, Managing Director
EBITDA margin guidance for the whole year from the beginning we said 28%, plus or minus 1% can be there. ... we're still holding true to that.
Answered
Medium priority
Asked about Africa business QoQ decline and second half outlook.
Asked by Rashmi Sancheti, Dolat Capital
Management explained the Q1 spike due to push-out from Q4 and guided lower run rate ahead.
Read the exchange
Question
The quarterly sales have actually declined quarter on quarter. Is it something related to seasonality or, you know, the supplies were higher in quarter one?
Yogesh Agrawal, Managing Director
In the Q4 of the last year, our sales were slightly on the lower side ... some of the sales got pushed out into the Q1 of this year. ... For the next quarters, run rate will be slightly lower than this.
Answered
High priority
Asked about India cardiac and pain segment growth vs market.
Asked by Vishal Manchanda, Systematix
Management provided specific growth rates for Ajanta and the market.
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Question
In India, in the cardiac and the pain segment, can you share the growth of the covered market and, Ajanta Pharma's growth?
Arvind Agrawal, CFO
For Q2, we have substantially outpaced the covered market growth in the cardiology. We are at 16%, whereas versus the covered market is at 8%.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| India business grew 9% in Q2 | 9% | 15% | Understated vs filing |
| Cardiology business grew 16% in Q2 | 16% | 15% | Matches filing |
| Asia business grew around 10% in Q2 | 10% | 15% | Understated vs filing |
| EBITDA margin guidance 28% plus/minus 1% for FY25 | 28% | 26% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.