Ajanta Pharma, a Rs.1,700 crore pharma major from Mumbai, has posted strong growth during the first quarter ended June 2016 and its consolidated net profit went up by 30 per cent to Rs.124.68 crore from Rs.88.56 crore in the similar quarter of last year. Its net sales improved by 17.8 per cent to Rs.454.21 crore from Rs.385.65 crore. EPS moved up to Rs.13.58 as against Rs.9.78 in the last period.
The company's domestic sales improved by 9.5 per cent to Rs.162.21 crore from Rs.148.20 crore and international sales up by 22.9 per cent to Rs.296.88 crore from Rs.241.55 crore. Its emerging markets business grew by 20 per cent with sale of Rs.287 crore. Africa contributed Rs.194 crore and Asia contributed Rs.93 crore. Currency devaluations and forex scarcity in select geographies continue to pose challenges and may put pressure. Its US sales increased to Rs.10 from Rs.3 crore in the same quarter of last year.
With strong performance, Ajanta Pharma scrip moved up by over Rs.63 in the afternoon session on BSE to over Rs.1,714. The scrip touched to its yearly high level at Rs.1,745.
Its R&D expenditure increased to Rs.32 crore from Rs.18 crore in the last period. It has 11 final ANDA approvals and 14 awaiting approval with US FDA. The company targets to file 8-12 ANDAs per year. The solid dosage formulation facility at Dahej is taking regulatory filing batches and will be commercialised from April 2017. Similarly, the construction of new formulation facility at Guwahati, Assam is on course to be operationalised by March 2017. Its R&D centres for formulation development and API are located at Mumbai, having a team of over 750 scientists.
Rajesh Agrawa, jt. managing director said, “We have started the year well with first quarter posting healthy set of numbers. During the quarter, we have received 2 ANDA approvals – some of which have been commercialized in US and other well be commercialized shortly. We are excited with the prospect of building the US business with our select ANDA portfolio in coming year. As per the plans, our R&D spend has increased to 7 per cent of the revenue for the quarter towards developing the identified products for sustained growth in future.”