Ajanta Pharma Limited · NSE:AJANTPHARM
Ajanta Pharma — Q2 FY2025 Earnings Presentation
43 slides from Ajanta Pharma's earnings presentation, Oct 28, 2024
Slide 1: Investor Presentation Q2 FY 2025
Investor Presentation Q2 FY 2025 October 28th, 2024
Slide 2: Important Disclosure
Important Disclosure Except for the historical information contained herein, statements in this presentation and any subsequent discussions, which include words or phrases such as 'will', 'aim', 'will likely result', 'would’, 'believe', 'may', 'expect', 'will continue', 'anticipate', 'estimate', 'in
Slide 3: Contents
1 Ajanta at a Glance 2 Branded Generic Business India, Asia, Africa – Diversified markets enables growth 3 US Generic Business Selective play & normalized price erosion assists growth 4 Africa Institution Business Contents In-line performance 5 R&D & Manufacturing Strong formulation capabilities 6 F
Slide 4: Ajanta at a Glance
Ajanta at a Glance 28th October 2024 4
Slide 5: We are present in 30 countries globally
We are present in 30 countries globally USA Africa India Rest of Asia 20 countries 10 countries Generic Generics Branded Generics 28th October 2024 5
Slide 6: Branded Generics in India & EM is sizeable part of the business
Branded Generics in India & EM is sizeable part of the business US Generics 50% 20% of our products are 1st to India Market Africa Instn. 4% H1 FY 2025 Sales 32% 5,100+ Rs. 2,299 cr. Medical Representatives Africa globally for promotion of 19% products Asia 25% 500+ Brands across therapeutic segment
Slide 7: Market diversification in Branded Generics enables continued growth
Market diversification in Branded Generics enables continued growth 3 India Africa Regions Asia Cardiac Chronic Diabetics Ophthal Derma Therapies in focus Pain Leadership In Molecules & Sub- Therapeutic Segments 28th October 2024 7
Slide 8: Our Business is well diversified & gives us an edge
Our Business is well diversified & gives us an edge Branded Generics Other Business India Asia Africa Institutional Africa US Generics 4 8 8 Anti Malaria 55 Approved ANDAs T Segments T Segments T Segments T Segment (includes 2 Tentative) ~50% Leadership Leading 1st 22 In Sub therapeutic Generic preq
Slide 9: Branded Generic Business: India Growth Continues
Branded India Generic Business Growth Continues 28th October 2024 9
Slide 10: We have a strong brand franchise in India
We have a strong brand franchise in India Sales Contribution 65% 5 year CAGR Chronic Sales (IQVIA MAT September 2024) (IQVIA MAT Mar 2020 - 2024) 12% 33% NLEM Exposure Pain 9% Derma Focus on Cardiac 38% 50%+ 20% 23% 1st to market products 19% 19% 4 16% specialty therapies 3,200+ MRs Ophthal 30% 250,
Slide 11: Our leading brands continue to post healthy growth
Our leading brands continue to post healthy growth 5 year CAGR 12 (IQVIA MAT Mar 2020 - 2024) INR 25+ Cr. Brands 25% 57% contribution from Top 10 brands 15% 13% 13% 13% 12% 12% 11% 11 New launches 7% 6% in H1 FY 2025 4 Aquasoft Feburic MET XL Apdrops Melacare 1st to market IPM APL in H1 FY 2025 28th
Slide 12: We continue to outperform industry growth
We continue to outperform industry growth IPM Growth vs. Ajanta Growth 20% Growth Structure 18%18% 16% September 2024 MAT 15% Ajanta (9.6%) 9% 10% 10% 8% 8% 8% 8% IPM (7.7%) 5% 4% 0% 3.1% Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 2.7% Cardiac Opthal Derma Pain 11% 5.3% 17% 9% 5% 10% 4.2% 8% 8% ~ 1.5X 0.8%
Slide 13: Branded Generic Business: Asia & Africa Growth continues
Branded Asia & Generic Africa Business Growth continues 28th October 2024 13
Slide 14: We have wide presence in markets & therapies
We have wide presence in markets & therapies Key Markets Africa, South East Asia, Middle East Asia & Central Asia Leadership In many molecules & sub-therapeutic segments Among Top 5 Players in major markets 28th October 2024 14
Slide 15: We were pioneers for front-end presence in EM
We were pioneers for front-end presence in EM 22 New Focus New launches Strengthening countries In H1 FY 2025 of small presence Pipeline Of healthy product registrations Major Therapeutic segments Cardiac Diabetes Ophthal Pain Derma Gastro Anti Respiratory Histamine 28th October 2024 EM = Emerging M
Slide 16: We are optimistic of consistent growth in EM
We are optimistic of consistent growth in EM Revenue (Rs. Cr.) Asia Africa 1,057 585 957 587 559 673 712 813 356 413 5 years Consistent growth both in Asia & Africa FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 28th October 2024 EM = Emerging Markets 16
Slide 17: USA Generic Business
USA Generic Selective product Business portfolio; strong supply chain & robust quality compliance 28th October 2024 17
Slide 18: Our US strategy of selective play pays
Our US strategy of selective play pays 55 ANDA approvals (includes 2 tentative) Revenue (INR Cr.) (4 in H1 FY 2025) 46 Products 964 on shelf 828 516 637 696 2 Launched during H1 FY 2025 FY20 FY21 FY22 FY23 FY24 4 ANDA filed in H1 FY 2025, target ~8 this year 22 28th October 2024 Pending approvals 18
Slide 19: Africa Institution Business In-line performance
Africa Institution Business In-line performance 28th October 2024 19
Slide 20: Our Institution business is of Anti-Malaria in Africa
Our Institution business is of Anti-Malaria in Africa Revenue (INR Cr) 1st Generic company to obtain WHO Pre-Qualification 271 244 249 206 190 1 Billion+ Patients treated till date FY20 FY21 FY22 FY23 FY24 Stagnates Due to lower procurement by aid agencies 28th October 2024 20
Slide 21: R&D & Manufacturing
R&D & Strong Manufacturing Formulation Development Capabilities 28th October 2024 21
Slide 22: Our R&D continues to provide product innovation
Our R&D continues to provide product innovation R&D Spend (Excluding Capex) (Rs. cr.) Strong Capabilities 6% 5% 6% 6% 5% • 800+ Scientists 237 • Formulation Development 204 208 164 • Analytical Development 139 • API Development • Bio-Analytical Lab • Drug Regulatory Affairs • IPR FY 2020 FY 2021 FY
Slide 23: Our 7 plants are best in class
Our 7 plants are best in class Paithan Dahej (Maharashtra) (Gujarat) Tablets, Capsules & Powder Tablets, Capsules & Powder Guwahati Pithampur (Assam) (Madhya Pradesh) 28th October 2024 Tablets, Capsules, Ointments & Sterile Eye Drops Tablets & Capsules 23
Slide 24: Financial Highlights
Financial Highlights Higher margins 28th October 2024 24
Slide 25: Branded Generics Sales Continues to Grow (Q2)
Branded Generics Sales Continues to Grow Q2 Consolidated 9% 28% 35% 20% Total (Rs. cr.) India Asia Africa (Rs. cr.) (Rs. cr.) (Rs. cr.) 894 386 743 355 296 213 230 157 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 25 25% 76% 28th October 2024 33% 18% of Total Revenue of Total Reven
Slide 26: Total Sales continues to grow (Q2)
Q2 So also, Total Sales continues to grow Consolidated 15% 20% 2% 16% Consolidated Sales (Rs. cr.) Branded Generics USA Generics Africa Institution (Rs. cr.) (Rs. cr.) (Rs. cr.) 1,170 894 1,01 8 743 237 232 43 37 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 76% 20% 4% 28th October
Slide 27: Branded Generics Sales Continues to Grow (H1)
Branded Generics Sales Continues to Grow H1 Consolidated 10% 18% 40% 19% Total (Rs. cr.) India Asia Africa (Rs. cr.) (Rs. cr.) (Rs. cr.) 1,75 4 739 674 1,475 572 443 484 316 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 27 25% 76% 28th October 2024 32% 19% of Total Revenue of Total
Slide 28: Total Sales continues to grow (H1)
H1 So also, Total Sales continues to grow Consolidated 13% 19% 2% 17% Consolidated Sales (Rs. cr.) Branded Generics USA Generics Africa Institution 2,299 (Rs. cr.) (Rs. cr.) (Rs. cr.) 2,02 1,75 8 4 1,47 5 451 460 102 85 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 76% 20% 4% 28th
Slide 29: Q2 FY 2025 (Consolidated): Consistent efforts pays
Q2 FY 2025 (Consolidated): Consistent efforts pays Rs. cr Q2 FY 2024 % to RO Q2 FY 2025 % to RO % Growth Revenue from Operations (RO) 1,028 1,187 15% COGS (256) 25% (262) 22% Gross Profit 772 75% 925 78% 20% Employee Benefit (222) 22% (261) 22% 17% Other Expenses (259) 25% (353) 30% 36% EBITDA 291 2
Slide 30: H1 FY 2025 (Consolidated): Consistent efforts pays
H1 FY 2025 (Consolidated): Consistent efforts pays Rs. cr H1 FY 2024 % to RO H1 FY 2025 % to RO % Growth Revenue from Operations (RO) 2,049 2,332 14% COGS (508) 25% (530) 23% Gross Profit 1,541 75% 1,802 77% 17% Employee Benefit (435) 21% (545) 23% 25% Other Expenses (534) 26% (616) 26% 15% EBITDA 5
Slide 31: Building efficiencies… (Assets)
Building efficiencies… Rs. cr. Statement of Assets & Liabilities FY 2024 H1 FY 2025 ASSETS Non-Current Assets Property, Plant and Equipment 1,399 1,374 Capital Work-in-Progress 256 349 Right for use assets 80 77 Other non-current assets 172 196 Sub-total - Non-current assets 1,907 41% 1,996 41% Curr
Slide 32: Building efficiencies… (Equity and Liabilities)
Building efficiencies… Rs. cr. Statement of Assets & Liabilities FY 2024 H1 FY 2025 EQUITY AND LIABILITIES Equity Equity Share Capital 25 25 Other Equity 3,542 3,652 Sub Total – Shareholders’ Funds 3,567 77% 3,677 76% Non-current Liabilities Non-current Liabilities 175 205 Sub Total – Non-Current Li
Slide 33: We have track record of consistent growth
We have track record of consistent growth Revenue EBITDA and Margin % PAT and Margin % (INR Cr.) (INR Cr.) (INR Cr.) 4,209 3,743 26% 35% 28% 21% 28% 28% 18% 23% 21% 16% 19% 20% 3,341 1172 2,890 816 2,588 999 929 713 2,332 654 783 588 683 642 468 462 FY20 FY21 FY22 FY23 FY24 H1 FY20 FY21 FY22 FY23 FY
Slide 34: Our ratios & cashflows are among best in industry
Our ratios & cashflows are among best in industry ROCE % (1) ROE % (2) CFO & Cash Conversion 34% 67% 58% 61% 99% 67% 121% 31% 26% 30% 28% 792 785 776 26% 23% 23% 23% 22% 19% 576 18% 562 457 FY20 FY21 FY22 FY23 FY24 H1 FY20 FY21 FY22 FY23 FY24 H1 FY25 FY20 FY21 FY22 FY23 FY24 H1 FY25 FY25 (INR Cr.) N
Slide 35: So also Earnings & Pay Out
So also Earnings & Pay Out EPS Payout (Dividend & Buyback) & PAT % Book Value per share (INR) (INR Cr.) (INR) 65 25% 38% 61% 81% 79% 76% 55 642 283 293 50 264 252 46 231 479 37 436 199 36 351 251 116 FY20 FY21 FY22 FY23 FY24 H1 FY20 FY21 FY22 FY23 FY24 H1 FY20 FY21 FY22 FY23 FY24 H1 FY25 FY25 FY25 2
Slide 36: We continue to improve on working capital front
We continue to improve on working capital front Receivable Days Inventory Days Payable Days (Nos.) (Nos.) (Nos.) 111 113 109 98 105 104 88 92 95 80 85 81 71 73 79 67 74 70 FY20 FY21 FY22 FY23 FY24 H1 FY20 FY21 FY22 FY23 FY24 H1 FY20 FY21 FY22 FY23 FY24 H1 FY25 FY25 FY25 28th October 2024 36
Slide 37: Strategy Initiatives Levers for Growth
Strategy Initiatives Levers for Growth 28th October 2024 37
Slide 38: Our growth levers for continued growth
Our growth levers for continued growth New products launches across markets Strong product portfolio under registration & development in R&D Gain market share in products Focus on field force productivity enhancement Optimize Expenses Focus on costs optimization Thrust on new countries & therapies A
Slide 39: Sustainability Initiatives
Sustainability Initiatives Committed to a sustainable future 28th October 2024 39
Slide 40: Sustainability: Committed to be responsible
Sustainability: Committed to be responsible Environment Quality First Reached 30% of renewable energy Resource efficiency & low-carbon processes Hazardous waste put to use in cement plant Highest quality products with no recalls Zero Tolerance CSR for child labor, forced labor, sexual harassment Edu
Slide 41: Earning Call Details
Earning Call Details 28th October 2024 41
Slide 42: Q2 FY25 Earnings Conference Call
Q2 FY25 Earnings Conference Call Date and Time October 28, 2024 at 1630 – 1730 hrs IST 1900 – 2000 hrs SST/HKT 1200 – 1300 hrs BST 0700 – 0800 hrs US ET Dial-in Numbers Earnings Conference Diamond pass link Click here to register for faster access Call Dial-in Information Universal Access Primary Ac
Slide 43: Thank you
For more information please visit our website: www.ajantapharma.com For regular updates follow us on twitter www.twitter.com/ajantapharmaltd For specific queries, contact: Thank you Rajeev Agarwal: 022-66061377 rajeev.agarwal@ajantapharma.com Abhineet Kumar: 022-66061814 abhineet.kumar@ajantapharma.