Ajanta Pharma, a Rs.1,700 crore Mumbai based pharma major, has posted strong consolidated net profit growth of 25.2 per cent to Rs.142.60 crore during the third quarter ended December 2016 from Rs.113.94 crore in the corresponding period of last year. Its net sales increased by 9.6 per cent to Rs.515.02 crore from Rs.469.57 crore. EPS improved to RS 16.21 from Rs.12.95 in the last period.
Ajanta scrip remained volatile today on news of warning letter from the US FDA for one of its facility. However, the company management denied the news. The scrip opened higher at Rs.1,794 today as against previous day’s close of Rs.1,738. However, it touched to lowest level at Rs.1,527.45 in mornings and then moved up and closed at Rs.1,756.50 on BSE.
Its domestic sales increased by 12.1 per cent to Rs.154 crore and that from international market improved by 8.7 per cent to Rs.361 crore. The net sales in Africa increased by 8 per cent to Rs.211 crore, Asia contributed Rs.90 crore, de-growth of 30 per cent. The sales in Africa and Asia were under pressure due to currency devaluations and forex scarcity in select geographies, which continue to pose challenges and resulted into sub-optimal business. Its US sales increased to Rs.59 crore.
Its R&D expenditure increased to Rs.45 crore and worked out to 8 per cent of its revenues. The company received 2 ANDA final approvals and it commercialized 3 products. It filed 6 ANDAs with US FDA during the quarter. Cumulative approval reached at 16 ANDAs and tentative approval for two products. Currently, 14 ANDAs are awaiting approval with US FDA.
Commenting on the financial performance, Rajesh Agrawal, joint managing director said “We have posted yet another quarter of satisfactory growth in sales and profitability. The external factors in emerging markets continue to pose challenges resulting into sub-optimal business. However we are pleased with the remarkable ramp up on our US business which has posted great results for the quarter. Going forward, we continue to focus on our key markets and therapeutic segments to drive the growth.”
for the nine months ended December 2016, Ajanta’s net sales increased by 13.7 per cent to Rs.1,476 crore from Rs.1,298 crore in the similar period of last year. Its net profit went up by 29.5 per cent to Rs.393 crore from Rs.303 crore. Its domestic sales increased by 12.9 per cent to Rs.474 crore and its international sales moved by 14.1 per cent to Rs.1,002 crore. EPS moved up to Rs.44.63 from Rs.34.48 in the R&D expenditure for the first nine months increased to Rs.114 crore and worked out to & per cent of its operating revenue.
