Ajanta Pharma Limited · NSE:AJANTPHARM
Ajanta Pharma — Q1 FY2025 Earnings Presentation
38 slides from Ajanta Pharma's earnings presentation, Jul 30, 2024
Slide 1: Investor Presentation Q1 FY 2025
Investor Presentation Q1 FY 2025 July 30th, 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 30th July 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 30th July 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% India of our products are 1st to Market Africa Instn. 4% Q1 FY 2025 Sales 31% 4,800+ Rs. 1,130 cr. Medical Representatives Africa globally for promotion of 20% 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 30th July 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 58 Approved ANDAs T Segments T Segments T Segments T Segment (includes 2 Tentative) ~50% Leadership Leading 1st 21 In Sub therapeutic Generic preq
Slide 9: Branded Generic Business: India Growth Continues
Branded India Generic Business Growth Continues 30th July 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 June 2024) (IQVIA MAT Mar 2020 - 2024) 12% 33% NLEM Exposure Pain 8% Derma Focus on Cardiac 38% 50%+ 20% 23% 1st to market products 19% 19% 4 16% specialty therapies 3,000+ MRs Ophthal 31% 250,000+
Slide 11: Our leading brands continue to post healthy growth
Our leading brands continue to post healthy growth 5 year CAGR 11 (IQVIA MAT Mar 2020 - 2024) INR 25+ Cr. Brands 25% 56% contribution from Top 10 brands 15% 13% 13% 13% 12% 12% 11% 1 New launches 7% 6% in Q1 FY 2025 1 Aquasoft Feburic MET XL Apdrops Melacare 1st to market IPM APL in Q1 FY 2025 30th
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% June 2024 MAT 15% Ajanta (8.9%) 9% 9% 10% 8% 8% 8% 8% IPM (7.6%) 5% 4% ~ 1.3X 3.8% 0% to IPM Mar-21 Mar-22 Mar-23 Mar-24 Jun-24 2.9% Cardiac Opthal Derma Pain 11% 9% 17% 4.8% 8% 4.2% 7% 7% 5% 7% 0.
Slide 13: Branded Generic Business: Asia & Africa Growth continues
Branded Asia & Generic Africa Business Growth continues 30th July 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 30th July 2024 14
Slide 15: We were pioneers for front-end presence in EM
We were pioneers for front-end presence in EM 9 New Focus New launches Strengthening countries In Q1 FY 2025 of small presence Pipeline Of healthy product registrations Major Therapeutic segments Cardiac Diabetes Ophthal Pain Derma Gastro Anti Respiratory Histamine 30th July 2024 EM = Emerging Marke
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 30th July 2024 EM = Emerging Markets 16
Slide 17: USA Generic Business
USA Generic Selective product Business portfolio; strong supply chain & robust quality compliance 30th July 2024 17
Slide 18: Our US strategy of selective play pays
Our US strategy of selective play pays 58 ANDA approvals (includes 2 tentative) Revenue (INR Cr.) 46 Products 964 on shelf 828 516 637 696 2 Launched during Q1 FY 2025 FY20 FY21 FY22 FY23 FY24 2 ANDA filed in Q1 FY 2025, target 8~12 this year 21 Pending approvals 30th July 2024 18
Slide 19: Africa Institution Business
Africa Institution Business In-line performance 30th July 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 30th July 2024 20
Slide 21: R&D & Manufacturing
R&D & Strong Manufacturing Formulation Development Capabilities 30th July 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) Tablets, Capsules, Ointments & Sterile Eye Drops 30th July 2024 Tablets & Capsules 23
Slide 24: Financial Highlights
Financial Highlights Higher margins 30th July 2024 24
Slide 25: Branded Generics Sales Continues to Grow
Branded Generics Sales Continues to Grow Q1 Consolidated 10% 9% 45% 17% Total (Rs. cr.) India Asia Africa (Rs. cr.) (Rs. cr.) (Rs. cr.) 860 353 732 319 277 254 230 159 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 25 31% 25% 20% 76% 30th July 2024 of Total Revenue of Total Revenue
Slide 26: So also, Total Sales continues to grow
Q1 So also, Total Sales continues to grow Consolidated 12% 17% 7% 36% Consolidated Sales (Rs. cr.) Branded Generics USA Generics Africa Institution 1,130 (Rs. cr.) (Rs. cr.) (Rs. cr.) 1,01 0 860 732 228 213 65 42 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 76% 20% 4% of Total Rev
Slide 27: Q1 FY 2025 (Consolidated): Consistent efforts pays
Q1 FY 2025 (Consolidated): Consistent efforts pays Rs. cr Q1 FY 2024 % to RO Q1 FY 2025 % to RO % Growth Revenue from Operations (RO) 1,021 1,145 12% COGS (252) 25% (268) 23% Gross Profit 769 75% 877 77% Employee Benefit (213) 21% (284) 25% Other Expenses (285) 27% (263) 23% EBITDA 271 27% 330 29% 2
Slide 28: 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% 18% 23% 21% 16% 19% 3,341 1172 2,890 816 2,588 999 929 713 654 783 588 683 468 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY
Slide 29: Our ratios & cashflows are among best in industry
Our ratios & cashflows are among best in industry ROCE % (1) ROE % (2) CFO & Cash Conversion 31% 67% 58% 61% 99% 67% 30% 28% 23% 23% 23% 26% 792 785 22% 19% 18% 576 562 457 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 (INR Cr.) Note: 1. ROCE calculated as EBIT / (Net wo
Slide 30: 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% 283 264 55 252 642 231 50 46 199 479 36 436 251 116 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 • Bonus issue in April 2022 adjusted in
Slide 31: 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.) 113 98 105 111 109 88 92 80 85 71 73 79 104 70 95 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 30th July 2024 31
Slide 32: Strategy Initiatives: Levers for Growth
Strategy Initiatives Levers for Growth 30th July 2024 32
Slide 33: 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 34: Sustainability Initiatives
Sustainability Initiatives Committed to a sustainable future 30th July 2024 34
Slide 35: 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 36: Earning Call Details
Earning Call Details 30th July 2024 36
Slide 37: Q1 FY25 Earnings Conference Call
Q1 FY25 Earnings Conference Call Date and Time July 30, 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 Acces
Slide 38: 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 [email protected] Abhineet Kumar: 022-66061814 abhineet.kumar@ajantapharma.