AJANTA PHARMA Announces Quarterly Results (1QFY21); Net Profit Up 28.9%

Mon, 24 Aug

AJANTA PHARMA has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

AJANTA PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-19*	3 Mar-20*	3 Jun-20*	QoQ Change	YoY Change
Net Sales	Rs m	6,119	6,820	6,682	-2.0%	9.2%
Other income	Rs m	76	567	131	-76.9%	71.7%
Turnover	Rs m	6,196	7,387	6,813	-7.8%	10.0%
Expenses	Rs m	4,436	5,306	4,450	-16.1%	0.3%
Gross profit	Rs m	1,684	1,488	2,232	50.0%	32.6%
Depreciation	Rs m	228	260	280	7.6%	23.0%
Interest	Rs m	18	36	16	-55.0%	-8.9%
Profit before tax	Rs m	1,515	1,759	2,067	17.5%	36.5%
Tax	Rs m	368	467	589	26.2%	60.0%
Profit after tax	Rs m	1,146	1,292	1,478	14.4%	28.9%
Gross profit margin	%	27.5	21.8	33.4
Effective tax rate	%	24.3	26.6	28.5
Net profit margin	%	18.5	17.5	21.7

Year-on-Year Performance:

• The company's operating income during the quarter grew 9.2% on a year-on-year (YoY) basis. The expenses were up by 0.3% YoY during the same period.
• The company's operating profit increased by 32.6% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 33.4% in 1QFY21 as against 27.5% in 1QFY20.
• Depreciation charges increased by 23.0% and finance costs declined by 8.9% YoY, respectively.
• Other income increased by 71.7% YoY during the quarter.
• Net profit for the quarter increased by 28.9% YoY. Net profit margins during the quarter increased from 18.5% in 1QFY20 to 21.7% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 2.0% on a quarter-on-quarter (QoQ) basis. The expenses were down by 16.1% QoQ during the same period.
• The company's operating profit increased by 50.0% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 33.4% in 1QFY21 as against 21.8% in 4QFY20.
• Net profit for the quarter increased by 14.4% QoQ, while net profit margins increased from 17.5% in 4QFY20 to 21.7% in 1QFY21.

To see how AJANTA PHARMA has performed over the last eight quarters,please visit here.

AJANTA PHARMA Share Price Performance

Over the last one year,AJANTA PHARMA share price has moved up from Rs 961.4 to Rs 1,610.0, registering a Gain of Rs 648.7 or around 67.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 19,222.8 (down 0.0%). Over the last one year it has moved up from 12,460.8 to 19,222.8, a gain of 6,762 points (up 54.3%).

Overall, the S&P BSE SENSEX is up 4.7% over the year.

Current Valuations

At the current price of Rs 1,610.0, the price to earnings (P/E) ratio of AJANTA PHARMA stands at 28.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 6.3 times.