Ajanta Pharma posts strong Q3 results
Shares of Ajanta Pharma rallied 8% to a fresh 52-week high of Rs 1,879.45 on the BSE on Wednesday after reporting a 64% rise in its consolidated net profit to Rs 177 crore for the quarter ended December 2021, mainly on account of robust sales. Consolidated revenue from operations of the company stood at Rs 749 crore for the quarter under consideration. It was Rs 651 crore for the same period a year ago.
In Q3FY21, the company’s India sales were at Rs 220 crore, up 13% from Rs 195 crore, while total export sales reported a growth of 17% at Rs 524 crore.
On the operational front, EBITDA was at Rs 242 crore as against Rs 186 crore, up 30%, while EBITDA margin was at 32%.
Ajanta Pharma delivered strong earnings, led by superior growth in the Branded Generics segment. This was further supported by a lower tax rate in 3QFY21. While the pace of ANDA filing has moderated in 9MFY21 due to COVID-related disruptions, it would improve with the easing of lockdown restrictions.
Given the improvement in Branded Generics segment, superior growth in US Generics, aided by consistent compliance and minimal financial leverage and healthy return ratios, Ajanta Pharma is expected to deliver strong performance in the near-term.
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