Ajanta Pharma Limited · NSE:AJANTPHARM
Ajanta Pharma — Q4 FY2024 Earnings Presentation
43 slides from Ajanta Pharma's earnings presentation, May 2, 2024
Slide 1: Investor Presentation Q4 FY 2024
Investor Presentation Q4 FY 2024 May 2nd, 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 2nd May 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 2nd May 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 50% Generics of our products are 1st to 23% India Market Africa Instn. FY 2024 Sales 31% 4,800+ 6% Rs. 4,162 cr. Medical Representatives globally for promotion of Africa products 15% Asia 25% 500+ Brands across therapeutic segments 2
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 2nd May 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
Branded India Generic Business Healthy Growth 2nd May 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 Mar 2024) (IQVIA MAT Mar 2020 - 2024) 12% 33% NLEM Exposure Pain 9% Derma Focus on Cardiac 38% 50%+ 20% 22% 1st to market products 19% 19% 4 16% specialty therapies 3,000+ MRs Ophthal 31% 250,000+ A
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% 15 New launches 7% 6% in FY 2024 4 Aquasoft Feburic MET XL Apdrops Melacare 1st to market IPM APL in FY 2024 2nd May 20
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% Mar 2024 MAT Ajanta (9.4%) 15% 13% 11% 10% 9% 8% 8% 8% IPM (7.6%) 5% 4% 4.1% ~ 1.4X 0% to IPM Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 2.9% Cardiac Opthal Derma Pain 4.0% 10% 12% 17% 12% 4.0% 9% 8% 4% ~
Slide 13: Branded Generic Business: Asia & Africa
Branded Asia & Generic Africa Business Growth continues 2nd May 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 10 Players in many markets 2nd May 2024 14
Slide 15: We were pioneers for front-end presence in EM
We were pioneers for front-end presence in EM 27 New Focus New launches in Strengthening countries FY 2024 of small presence Pipeline Of healthy product registrations Major Therapeutic segments Cardiac Diabetes Ophthal Pain Derma Gastro Anti Respiratory Histamine 2nd May 2024 EM = Emerging Markets 1
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 2nd May 2024 EM = Emerging Markets 16
Slide 17: USA Generic Business
USA Generic Selective product Business portfolio; strong supply chain & robust quality compliance 2nd May 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.) 44 Products 964 on shelf 828 516 637 696 4 Launched during FY 2024 FY20 FY21 FY22 FY23 FY24 7 ANDA filed in FY 2024, target 8~12 this year 22 Pending approvals 2nd May 2024 18
Slide 19: Africa Institution Business
Africa Institution Business In-line performance 2nd May 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 2nd May 2024 20
Slide 21: R&D & Manufacturing
R&D & Strong Manufacturing Formulation Development Capabilities 2nd May 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 Tablets & Capsules 2nd May 2024 23
Slide 24: Financial Highlights
Financial Highlights Higher margins 2nd May 2024 24
Slide 25: Branded Generics Sales Continues to Grow
Branded Generics Sales Continues to Grow Q4 Consolidated 14% 18% 13% 15% India Asia Africa Total (Rs. cr.) (Rs. cr.) (Rs. cr.) (Rs. cr.) 281 113 720 238 100 326 625 287 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 25 31% 27% 11% 69% 2nd May 2024 of Total Revenue of Total Revenue o
Slide 26: So also Total Sales continues to grow
Q4 So also Total Sales continues to grow Consolidated 15% 32% 23% 20% Branded Generics USA Generics Africa Institution Consolidated Sales (Rs. cr.) (Rs. cr.) (Rs. cr.) (Rs. cr.) 1,04 61 1 261 720 871 625 49 197 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 69% 25% 6% of Total Reven
Slide 27: India takes the lead in Branded Generics Sales
India takes the lead in Branded Generics Sales FY Consolidated 11% 10% 5% 10% India Asia Africa Total (Rs. cr.) (Rs. cr.) (Rs. cr.) (Rs. cr.) 1,0 1,30 2,94 957 57 8 585 9 1,17 559 2,690 4 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 31% 26% 14% 71% 2nd May 2024 of Total Revenue of Total Revenue of Total
Slide 28: Healthy overall growth
FY Healthy overall growth Consolidated 10% 16% 31% 13% Branded Generics USA Generics Africa Institution Consolidated Sales (Rs. cr.) (Rs. cr.) (Rs. cr.) (Rs. cr.) 3,70 4,162 2,94 249 8 2,69 9 964 0 828 190 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 71% 23% 6% of Total Revenue of Total Revenue of Total
Slide 29: EBITDA @ 26% with consistent efforts
EBITDA @ 26% with consistent efforts Q4 Consolidated (INR Cr) Q4 FY 2023 % to RO Q4 FY 2024 % to RO % Growth Revenue from Operations (RO) 882 1,054 20% COGS (241) 27% (264) 25% Gross Profit 641 73% 790 75% 23% Employee Benefit (224) 25% (234) 22% 4% Other Expenses (268) 30% (278) 26% 4% EBITDA 149 1
Slide 30: Profitability improves with cost optimization
FY Profitability improves with cost optimization Consolidated (INR Cr) FY 2023 % to RO FY 2024 % to RO % Growth Revenue from Operations (RO) 3,743 4,209 12% COGS (1,051) 28% (1,067) 25% Gross Profit 2,692 72% 3,142 75% 17% Employee Benefit (785) 21% (900) 21% 15% Other Expenses (1,124) 31% (1,070) 2
Slide 31: Improving working capital efficiency
FY Improving working capital efficiency Consolidated Rs. cr. Statement of Assets & Liabilities FY 2023 FY 2024 ASSETS Non-Current Assets Property, Plant and Equipment 1,416 1,399 Capital Work-in-Progress 209 256 Right for use assets 81 80 Other non-current assets 139 172 Sub-total - Non-current asse
Slide 32: Healthy retained earnings
FY Healthy retained earnings Consolidated Rs. cr. Statement of Assets & Liabilities FY 2023 FY 2024 EQUITY AND LIABILITIES Equity Equity Share Capital 25 25 Other Equity 3,363 3,542 Sub Total – Shareholders’ Funds 3,388 72% 3,567 77% Non-current Liabilities Non-current Liabilities 152 175 Sub Total
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% 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 34: 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 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% 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 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.) 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 2nd May 2024 36
Slide 37: Strategy Initiatives: Levers for Growth
Strategy Initiatives Levers for Growth 2nd May 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 and development in R&D Increase market share in existing products Focus on field force productivity enhancement Increasing the field presence as needed Adding field selectively in
Slide 39: Sustainability Initiatives
Sustainability Initiatives 2nd May 2024 39
Slide 40: Sustainability: Committed to be responsible
Sustainability: Committed to be responsible Environment Quality First Commissioned 8.8 MW solar plant 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 2nd May 2024 41
Slide 42: Q4 FY24 Earnings Conference Call
Q4 FY24 Earnings Conference Call Date and Time May 02, 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 Access
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 [email protected] Abhineet Kumar: 022-66061814 abhineet.kumar@ajantapharma.