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Systematix Research Report
Ajanta Pharma Ltd. reported revenue at Rs 9,381 million which was inline with our estimate; however, profit after tax came in 11% below our estimate. Higher other expenses and adverse currency movement impacted margins.
On the revenue front, India and Asia branded formulation business posted robust revenue growth (27% and 31% respectively) which was offset by a decline in Africa branded formulation business on account of adverse currency movement.
Ajanta Pharma's African business is denominated in euro which faced significant depreciation.
The company has reported an Ebitda margin of 22.1% in H1 FY23 which is much below the previous company annual guidance of 25-27% for FY23. Ajanta Pharma now expects to record an Ebitda margin of 25-27% in H2 FY23.
Other expenses were elevated during the quarter as prices of cold chain containers continue to remain elevated and certain costs related to product registration and promotional expenses were preponed and recorded in this quarter.
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