Ajanta Pharma Limited — Q3 FY24
Ajanta Pharma reported a strong Q3 FY24 with consolidated revenue of INR 1,105 crore, up 14% YoY, driven by broad-based growth across branded generics.
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.
96%Questions answered0Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
High priority
Red Sea impact on Asia and Africa sales in Q4?
Asked by Rashmi Shetty, Dolat Capital
Management directly stated no significant impact and reaffirmed guidance.
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Question
So on this Red Sea impact, which you mentioned, that, you know, it is going to impact the EBITDA in quarter four, is this something that it is going to impact the supplies in Asia and Africa sales in quarter four?
Arvind Agrawal, CFO
No, not significantly. I think whatever guidances we have given for each of the regions we should be able to meet those guidances.
Answered
High priority
Growth outlook for Asia and Africa in FY25-26?
Asked by Rashmi Shetty, Dolat Capital
Provided explicit growth range for future years.
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Question
So, for Asia business, low double digit you have given for this year, right? And, for FY 2025 and 2026, how should we look at this thing?
Arvind Agrawal, CFO
Going forward also, we expect around the low-teens to mid-teens numbers for Africa and Asia.
Answered
Medium priority
Outlook for institutional business next two years?
Asked by Rashmi Shetty, Dolat Capital
Provided a clear growth expectation (flattish).
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Question
And then last question on institutional business, you know, what is really changing in the entire business? ... how should we actually see this for, you know, next two years?
Arvind Agrawal, CFO
We can expect it to be a flattish kind of growth for the institution business.
Answered
High priority
Strategy to improve growth in cardiovascular segment?
Asked by Sudarshan Padmanabhan, JM Financial PMS
Explained specific levers: new launches and CRM activities.
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Question
So can you talk a little bit more about what we can do to improve the growth, specifically in the cardiovascular space, which has been a little lower than what we had expected?
Yogesh Agrawal, Managing Director
One is new product launches. ... And second is just to gain market share by way of increasing more CRM activities... we should be able to once again record faster growth compared to the industry.
Answered
Medium priority
Will Ajanta acquire brands or divisions?
Asked by Sudarshan Padmanabhan, JM Financial PMS
Confirmed openness to acquisitions without specifics.
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Question
Do you think, you know, if as a strategy, you would be looking to acquire certain brands, well-known brands or certain divisions to accentuate your, you know, already strong presence in the domestic market?
Yogesh Agrawal, Managing Director
Certainly, we are always on the lookout for suitable, brand acquisition targets and also opportunities. ... Inorganic growth is most welcome for us.
Answered
High priority
Sustainability of 27-28% EBITDA margins and Red Sea risk?
Asked by Sudarshan Padmanabhan, JM Financial PMS
Quantified freight impact and stated no material margin risk.
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Question
Number one, is going forward, I mean, this 27%-28% margins that we have been doing this year, how do you see the sustainability of it, and is there a risk in terms of transportation costs moving substantially with this issue to the Red Sea?
Yogesh Agrawal, Managing Director
The freight can go up by 0.5%, overall, so which can translate into around INR 30-35 crore increase cost as compared to the current year. ... we don't see as materially impacting whatever is there.
Answered
High priority
Chantix launch timeline and US price erosion?
Asked by Sudarshan Padmanabhan, JM Financial PMS
Provided specific timeline for Chantix and confirmed lower erosion.
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Question
With respect to the U.S., I mean, are we... You know, when do we expect Chantix to be launched? And are we also seeing the base business erosion being lower?
Yogesh Agrawal, Managing Director
The price erosion has slowed down. ... we are looking at a Q1 of the next year launch for the Chantix.
Answered
Medium priority
Impact of anti-malarial vaccine on Ajanta's business?
Asked by Aman Kumar Singh
Gave a clear timeframe and conclusion of no meaningful impact.
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Question
One is on, have we taken the impact of, you know, launch of anti-malarial vaccine in Africa? So like, what impact it is going to have on our business?
Yogesh Agrawal, Managing Director
Next, 3-5 years, we don't see the vaccines to be having a meaningful impact on the anti-malarial market in Africa.
Answered
Medium priority
Why not deploy cash more meaningfully instead of dividends?
Asked by Aman Kumar Singh
Explained cash usage rationale and lack of suitable acquisition targets.
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Question
We have so much cash, which we are actually giving back to the shareholders in terms of a very hefty dividend. But can't this cash be deployed in a more meaningful manner by, you know, either organically expanding or inorganically expanding the business?
Yogesh Agrawal, Managing Director
The only way we can use the cash is only for the acquisitions. ... we don't have any candidate for which we would like to keep the cash in the company.
Answered
High priority
Cardiac underperformance: NLEM impact or market share loss?
Asked by Harsh Bhatia, Bandhan AMC
Attributed impact to both NLEM and competition, with specifics.
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Question
Would you say that there is some level of market share loss across, statins? Or would you say that majority of the impact continues to be at the NLEM level?
Yogesh Agrawal, Managing Director
Major impact is because of the NLEM, price reductions that have happened. But, also, ... competitive intensity in the marketplace has increased... there is some small bit of maybe insignificant, market loss happening.
Answered
High priority
R&D spend and ANDA filing plans?
Asked by Kunal Randeria, Axis Capital
Provided specific ANDA filing targets and R&D spend outlook.
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Question
Now that the US outlook is slightly better ... are you planning to increase your R&D and filing going ahead?
Yogesh Agrawal, Managing Director
Next year, we are taking the target of 8-12 ANDAs. ... There'll be a marginal increase in the R&D spend, but probably percentage-wise, it should remain around the same of the current year.
Partial answer
High priority
Risk to margins reaching 30% in a couple of years?
Asked by Kunal Randeria, Axis Capital
Identified risks but avoided committing to a specific margin target or timeline.
no specific timelinedeclined to give forward-looking outlook
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Question
So what is the risk to your margin going to 30%, in a couple of years' time?
Yogesh Agrawal, Managing Director
U.S. price erosion is one unknown variable ... Second could be institution business ... Going forward also, we believe that in the coming years, it should inch up.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Asia full year growth low teens | 12% | 14% | Understated vs filing |
| Africa full year growth mid to high single digits | 7% | 14% | Understated vs filing |
| India business FY24 guidance low double digits 12-13% | 12.5% | 14% | Matches filing |
| EBITDA margin guidance 27% ±1% for FY24 | 27% | 28% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.