AJANTA PHARMA 2023-24 Annual Report Analysis

Wed, 19 Jun

AJANTA PHARMA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

AJANTA PHARMA Income Statement Analysis

• Operating income during the year rose 6.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.2% in FY24 as against 20.9% in FY23.
• Depreciation charges increased by 1.0% and finance costs increased by 16.4% YoY, respectively.
• Other income grew by 18.1% YoY.
• Net profit for the year grew by 37.3% YoY.
• Net profit margins during the year grew from 15.7% in FY23 to 20.3% in FY24.

AJANTA PHARMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	37,426	39,711	6.1%
Other income	Rs m	986	1,165	18.1%
Total Revenues	Rs m	38,413	40,876	6.4%
Gross profit	Rs m	7,833	11,194	42.9%
Depreciation	Rs m	1,308	1,322	1.0%
Interest	Rs m	58	68	16.4%
Profit before tax	Rs m	7,453	10,970	47.2%
Tax	Rs m	1,573	2,897	84.2%
Profit after tax	Rs m	5,880	8,072	37.3%
Gross profit margin	%	20.9	28.2
Effective tax rate	%	21.1	26.4
Net profit margin	%	15.7	20.3

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AJANTA PHARMA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 11 billion in FY23, thereby witnessing an decrease of -44.8%.
• Current assets fell 14% and stood at Rs 24 billion, while fixed assets fell 5% and stood at Rs 18 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 42 billion as against Rs 47 billion during FY23, thereby witnessing a fall of 10%.

AJANTA PHARMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	33,877	34,079	0.6
Current Liabilities	Rs m	11,393	6,292	-44.8
Long-term Debt	Rs m	13	0	-100.0
Total Liabilities	Rs m	47,047	42,174	-10.4
Current assets	Rs m	28,252	24,328	-13.9
Fixed Assets	Rs m	18,707	17,758	-5.1
Total Assets	Rs m	47,047	42,174	-10.4

AJANTA PHARMA Cash Flow Statement Analysis

• AJANTA PHARMA's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs 1 billion net cash flows seen during FY23.

AJANTA PHARMA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	7,918	7,354	-7.1%
Cash Flow from Investing Activities	Rs m	-5,596	1,050	-
Cash Flow from Financing Activities	Rs m	-1,079	-10,477	-
Net Cash Flow	Rs m	1,243	-2,073	-

Current Valuations for AJANTA PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 64.1, an improvement from the EPS of Rs 46.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,389.0, stands at 36.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.8 times, while the price to sales ratio stands at 7.6 times.
• The company's price to cash flow (P/CF) ratio stood at 23.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	297.2	315.4
TTM Earnings per share	Rs	46.7	64.1
Diluted earnings per share	Rs	46.7	64.1
Price to Cash Flow	x	21.2	23.9
TTM P/E ratio	x	25.9	36.9
Price / Book Value ratio	x	4.6	6.6
Market Cap	Rs m	156,638	224,309
Dividends per share (Unadj.)	Rs	7.0	51.0

Ratio Analysis for AJANTA PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY24, from 2.5x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 162.3x during FY24, from 128.6x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 23.7% during FY24, from 17.4% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 32.4% during FY24, from 22.2% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 19.3% during FY24, from 12.6% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.5	3.9
Debtors’ Days	Days	10	11
Interest coverage	x	128.6	162.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.6	19.3
Return on equity	%	17.4	23.7
Return on capital employed	%	22.2	32.4

To see how AJANTA PHARMA has performed over the last 5 years, please visit here.

AJANTA PHARMA Share Price Performance

Over the last one year, AJANTA PHARMA share price has moved up from Rs 1,474.1 to Rs 2,389.0, registering a gain of Rs 915.0 or around 62.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 36,961.3 (down 0.5%). Over the last one year it has moved up from 25,118.0 to 36,961.3, a gain of 11,843 points (up 47.2%).

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for AJANTA PHARMA and quarterly results for AJANTA PHARMA)