AJANTA PHARMA Announces Quarterly Results (2QFY20); Net Profit Down 7.2%

Fri, 8 Nov

AJANTA PHARMA has announced its results for the quarter ended September 2019. Here is a detailed performance review of the same:

AJANTA PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	5,441	6,119	6,428	5.0%	18.1%
Other income	Rs m	152	76	132	73.0%	-13.3%
Turnover	Rs m	5,594	6,196	6,560	5.9%	17.3%
Expenses	Rs m	3,779	4,436	4,651	4.9%	23.1%
Gross profit	Rs m	1,662	1,684	1,766	4.9%	6.2%
Depreciation	Rs m	175	228	233	2.3%	33.2%
Interest	Rs m	1	18	49	175.4%	3692.3%
Profit before tax	Rs m	1,638	1,515	1,616	6.7%	-1.4%
Tax	Rs m	385	368	452	22.8%	17.6%
Profit after tax	Rs m	1,254	1,146	1,164	1.5%	-7.2%
Gross profit margin	%	30.5	27.5	27.5
Effective tax rate	%	23.5	24.3	28.0
Net profit margin	%	22.4	18.5	17.7

Year-on-Year Performance:

• The company's operating income during the quarter grew 18.1% on a year-on-year (YoY) basis. The expenses were up by 23.1% YoY during the same period.
• The company's operating profit increased by 6.2% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 27.5% in 2QFY20 as against 30.5% in 2QFY19.
• Depreciation charges increased by 33.2% and finance costs increased by 3692.3% YoY, respectively.
• Other income declined by 13.3% YoY during the quarter.
• Net profit for the quarter declined by 7.2% YoY. Net profit margins during the quarter declined from 22.4% in 2QFY19 to 17.7% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 5.0% on a quarter-on-quarter (QoQ) basis. The expenses were up by 4.9% QoQ during the same period.
• The company's operating profit increased by 4.9% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 27.5% in 2QFY20 as against 27.5% in 1QFY19.
• Net profit for the quarter increased by 1.5% QoQ, while net profit margins declined from 18.5% in 1QFY19 to 17.7% in 2QFY20.

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

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AJANTA PHARMA Share Price Performance

Over the last one year,AJANTA PHARMA share price has moved down from Rs 1,058.0 to Rs 996.0, registering a Loss of Rs 62.0 or around 5.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,228.6 (down 0.7%). Over the last one year it has moved down from 14,540.6 to 13,228.6, a gain of 1,312 points (down 9.0%).

Overall, the S&P BSE SENSEX is up 15.1% over the year.

Current Valuations

At the current price of Rs 996.0, the price to earnings (P/E) ratio of AJANTA PHARMA stands at 22.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.9 times.