Indian pharmaceutical company Ajanta Pharma said that it expects its FY25 revenue growth to be in the low teens.
“We expect our overall FY25 revenue growth to be in the low teens, though branded generics growth will be in the mid-teens,” the management said in its Q4 FY24 post-earnings conference call. Branded generics reported revenues of Rs 720 crore in the quarter, up 15 percent from the same period last year.
As per IQVIA MAT March 2024 data, Ajanta’s growth was 9.40 percent versus the Indian pharma market's (IPM) growth of 7.60 percent. This was mainly driven by volume growth, which was double that of the IPM, and new launches, which were about 1.4 times IPM's, the company added.
Ajanta Pharma anticipates the fastest growth to come from its dermatology portfolio, followed by ophthalmology and cardiology.
The US generics business reported revenues of Rs 261 crore, up 32 percent from the same quarter in the previous year. The management added that, “This year was very good for us due to softening of price erosion, shortages, and easing of API prices in the US market.''
At Rs 203 crore, Ajanta Pharma reported a 66 percent year-on-year (YoY) rise in profits after tax (PAT) for the March quarter, compared with Rs 122 crore in the year prior. The specialty pharmaceutical formulation company said its overall revenue from operations grew 20 per cent YoY to Rs 1,054 crore, compared with Rs 882 crore in the year-ago quarter.
The company plans a capex of Rs 175-200 crore in FY25 compared to Rs 160 crore incurred in FY24. The company will also add 200 people to its medical representatives team. In FY24, Ajanta Pharma filed seven ANDAs (abbreviated new drug applications), received seven final approvals, and launched 4 ANDAs. The company has 44 products available on the shelves and 22 ANDAs are awaiting approval with the US FDA.
The company's board also approved a buyback of shares on May 2. The drug-maker will repurchase up to 10.28 lakh equity shares, or 0.82 percent of the outstanding shares of the company. The buyback price of Rs 2,770 is a 24.5 percent premium to the stock's closing price on May 2. Ajanta Pharma will spend Rs 285 crore to carry out the share buyback.
Also read: Elections 2024: What kind of healthcare do the party manifestos promise?
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