Ajanta Pharma Ltd.’s share price rose after the company reported a 19 per cent increase in profit after tax for the quarter ended June 30, 2023, at ₹208.12 crore compared to ₹174.62 crore during the corresponding quarter last year.
The company’s revenue was up 7.37 per cent to ₹1,021.04 crore compared to ₹950.93 crore last year.
A report by ICICI Securities stated, “Ajanta’s increased capital allocation towards the branded generics segment (72 per cent of the revenues): More product launches (including higher First to Market molecules) in various geographies, with differentiated delivery systems or combinations and doubling of the international workforce (up 50 per cent) and Reduced capital allocation to US businesses: In spite of a mere 22 per cent revenue contribution, 2/3 of working capital is tied to the business (overall, 141 days in FY23). To counter increased erosion in the market, Ajanta aims to selectively launch products in lower-competitive businesses and limit US revenues to 15 per cent of total revenues.”
Ajanta Pharma’s Revenues/EBITDA/PAT are expected to grow at a CAGR of 11 per cent, 23 per cent, and 25 per cent in FY23–25, respectively. Return ratios are expected to reach 25 per cent
The share price went up to ₹1,662 at 12.15 p.m. on BSE.