Q4 2025 Ajanta Pharma Ltd Earnings Call Transcript
Key Points
- Ajanta Pharma Ltd (BOM:532331) reported a healthy growth of 15% in its Branded Generic business, contributing 74% to overall revenue.
- The company's return on capital employed (ROCE) improved to 32% and return on net worth (RONW) reached 25%, showcasing strong financial performance.
- Ajanta Pharma Ltd distributed a significant payout of INR700 crore to shareholders, reflecting a strong cash conversion ratio of 92%.
- The Africa business achieved an outstanding growth of 28%, driven by strategic focus on expanding the chronic therapies portfolio.
- The US Generic business posted a healthy growth of 25% in Q4, with expectations of stronger growth in FY 2026 due to a robust pipeline of additional launches.
- The Africa Institution business experienced a significant degrowth of 41%, reducing its contribution to revenue to just 3%.
- Personnel costs increased by 21% over the previous year due to changes in gratuity policy and addition of medical representatives.
- The company's EBITDA margin was lower at 25% in Q4 due to higher personnel costs and lower gross margin from changes in business mix.
- The ophthalmology segment in India showed lower growth of 5%, raising concerns about its performance.
- Ajanta Pharma Ltd remains cautious about the unpredictable nature of the Africa Institution business due to its dependence on procurement agencies.
Ladies and gentlemen, good day, and welcome to Ajanta Pharma Q4 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Yogesh Agrawal, Managing Director of Ajanta Pharma Limited. Thank you, and over to you, sir.
Thank you. Good evening, and welcome to all of you. With me, I have Mr. Rajesh Agrawal, our Joint Managing Director; Mr. Arvind Agrawal, Chief Financial Officer; and Mr. Rajeev Agarwal, our AVP Finance and Investor Relations.
The results are already with you. We will take you through business-wise performance for the quarter and for the whole year, along with the comparison of previous year same period. Let's get into the business performance. For the current year, FY 2025, marked yet another year of outstanding performance, driven by our well-crafted strategy and strong operational execution.
We are committed to growing sustainably and scaling up responsibly, building
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
