Ajanta Pharma stock soars over 13.5% to new all-time high on stellar performance in Q4
Ajanta Pharma, a specialty pharmaceutical formulation company, witnessed a 13.70% surge in its shares during morning trade today, reaching a new all-time high of ₹2,540 apiece. This surge follows the company's stellar performance in the quarter ending March and for the full fiscal year. On Thursday, after market hours, the company released its financial results, reporting a 66% YoY jump in its consolidated net profit of ₹203 crore for Q4FY24.
The drugmaker reported a net profit of ₹122 crore in the January-March quarter of the previous fiscal. Also Read: Bajaj Finance share price jumps over 7% after RBI lifts restrictions on its eCom and Insta EMI Card Its revenue from operations during the reporting quarter improved by 20% YoY to 1,054 crore, while the EBITDA came in at ₹278 crore against ₹149 crore in Q4FY23, which is an increase of 86%. The EBITDA margin surged to 26%.
The strong performance in the quarter was led by solid growth in African institutional sales, which reported 23% YoY growth in Q4 and better-than-expected gross margins (due to the softening of API prices). Growth in branded markets was strong, which came in line with the analyst estimates. Asia, Africa, and India sales grew by 18%, 13%, and 14%, respectively, on a YoY basis in Q4.
The US market demonstrated exceptional performance this year, attributed to factors such as a reduction in price erosion, mitigated drug shortages, lower logistics costs, and favourable API prices. Price erosion in the US is projected to range from high single-digits to low double-digits. For FY25, the company aims to file 8–12 ANDAs and plans to launch 5–6 products, with a majority of these launches scheduled for the second half of FY25.
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