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AJANTA PHARMA Announces Quarterly Results (3QFY21); Net Profit Up 64.2%

Fri, 5 Feb

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

AJANTA PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	6,512	7,159	7,487	4.6%	15.0%
Other income	Rs m	146	49	55	13.0%	-62.6%
Turnover	Rs m	6,659	7,208	7,542	4.6%	13.3%
Expenses	Rs m	4,652	4,417	5,071	14.8%	9.0%
Gross profit	Rs m	1,856	2,743	2,417	-11.9%	30.2%
Depreciation	Rs m	236	283	291	2.9%	23.5%
Interest	Rs m	16	15	26	66.7%	62.4%
Profit before tax	Rs m	1,751	2,492	2,155	-13.5%	23.1%
Tax	Rs m	676	790	388	-50.8%	-42.5%
Profit after tax	Rs m	1,076	1,702	1,766	3.8%	64.2%
Gross profit margin	%	28.5	38.3	32.3
Effective tax rate	%	38.6	31.7	18.0
Net profit margin	%	16.2	23.6	23.4

Year-on-Year Performance:

• The company's operating income during the quarter grew 15.0% on a year-on-year (YoY) basis. The expenses were up by 9.0% YoY during the same period.
• The company's operating profit increased by 30.2% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 32.3% in 3QFY21 as against 28.5% in 3QFY20.
• Depreciation charges increased by 23.5% and finance costs increased by 62.4% YoY, respectively.
• Other income declined by 62.6% YoY during the quarter.
• Net profit for the quarter increased by 64.2% YoY. Net profit margins during the quarter increased from 16.2% in 3QFY20 to 23.4% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 4.6% on a quarter-on-quarter (QoQ) basis. The expenses were up by 14.8% QoQ during the same period.
• The company's operating profit declined by 11.9% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 32.3% in 3QFY21 as against 38.3% in 2QFY20.
• Net profit for the quarter increased by 3.8% QoQ, while net profit margins declined from 23.6% in 2QFY20 to 23.4% in 3QFY21.

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 up from Rs 1,194.4 to Rs 1,817.2, registering a Gain of Rs 622.8 or around 52.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,756.0 (up 0.6%). Over the last one year it has moved up from 13,946.5 to 21,756.0, a gain of 7,809 points (up 56.0%).

Overall, the S&P BSE SENSEX is up 27.4% over the year.

Current Valuations

At the current price of Rs 1,817.2, the price to earnings (P/E) ratio of AJANTA PHARMA stands at 25.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 7.1 times.