Ajanta Pharma, a Rs.1,700 crore pharma major from Mumbai, has registered strong net profit growth of 43.4 per cent during the fourth quarter ended March 2016 to Rs.106.31 crore from Rs.74.14 crore in the corresponding period of last year with lower taxation and interest burden. However, EBDITA improved only by 4.1 per cent to Rs.141.52 crore from Rs.135.97 crore. Its consolidated net sales increased by 15.3 per cent to Rs.419.20 crore from Rs.363.61 crore. The company declared interim dividend of Rs.8 per share in March 2016 and have recommended the same amount to be considered as final dividend.

Its domestic sales increased by 5 per cent to Rs.122.65 crore from Rs.116.83 crore and international sales 20.1 per cent to Rs.299.95 crore from Rs.249.68 crore. Emerging markets sales grew by 19 per cent to Rs.295 crore. Africa contributed Rs.174 crore and Asia contributed Rs.119 crore. However, Lower than expected growth in sales impacted scrip movement on Bombay Stock Exchange and declined by Rs.43 to Rs.1,492.30 after announcement of financial performance. Scrip touched to its yearly highest level at Rs.1,720 on January 18, 2016.

Yogesh Agrawal, managing director, said, “Despite challenges of foreign currency volatility and scarcity in the emerging markets, we have posted overall satisfactory growth during the quarter. In India and Emerging markets, we continue to construct portfolio of differentiated products paving way for sustained growth in future. We continue to craft smart strategies to leverage our differentiated products portfolio in increasing our market share. We have enhanced our focus on the R&D which reflects in our spend levels. Our capex plans are on-course to complete on the target dates.”

For the full year ended March 2016, Ajanta's consolidated net sales increased by 17.9 per cent to Rs.1,705 crore from Rs.1,446 crore in the previous year. Its net profit went up by 29.5 per cent to Rs.401.41 crore from Rs.309.86 crore. EBDITA improved by 13.8 per cent to Rs.589.22 crore from Rs.517.89 crore. EPS worked out to Rs.45.62 as against Rs.35.24 in the last year. Equity capital stood at Rs.17.69 crore and its reserves & surplus increased by 40.2 per cent to Rs.1,154.37 crore from Rs.823.41 crore in the previous year. R&D expenditure went up by 51.4 per cent to Rs.106 crore from Rs.70 crore in the previous year. Currently, over 650 scientists are working in its R&D centres in Mumbai. The company is set to start commercial production from its Dahej facility in Gujarat by April 2017. Ajanta is setting up new facility at Guwahati, Assam and likely to commence production by March 2017.

Its India branded business (excluding institution) achieved growth of 18 per cent to Rs.492 crore. Emerging markets consolidated business grew by 21 per cent with sale of Rs.1,163 crore. Africa sales increased by 32 per cent to Rs.692 crore and that in Asia increased by 8 per cent to Rs.461 crore. Its sales in US increased to Rs.14 crore. The company has total 8 final and 2 tentative approvals from US FDA, out of which 5 products have already been launched in the market. Another 16 ANDAs are in various stages of approval with US FDA.