Ajanta Pharma Limited (NSE:AJANTPHARM)
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May 8, 2026, 3:29 PM IST
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Q1 23/24

Jul 27, 2023

Operator

Ladies and gentlemen, good day, welcome to the Ajanta Pharma Q1 FY 2024 earnings conference call. As a reminder, all participant lines will be in a listen-only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference, please signal an operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Yogesh Agrawal, Managing Director of Ajanta Pharma Limited. Thank you, over to you, sir.

Yogesh Agrawal
Managing Director, Ajanta Pharma

Thank you. Good evening, and welcome, all of you. With me, I have Mr. Rajesh Agrawal, our Joint Managing Director, Mr. Arvind Agrawal, our CFO, Mr. Rajiv Agrawal, our AVP, Finance and Investor Relations. Friends, on July ninth, we celebrated a significant milestone, the fiftieth anniversary of Ajanta Pharma. Today, our company stands strong and distinguished within the pharmaceutical industry. We have not only stood shoulder to shoulder with our leading companies, but we have also carved out our own unique mark of excellence. Over the years, we have built large brands across geographies, state-of-the-art research and development center, top-notch manufacturing facilities, robust quality systems, and efficient business processes that are second to none. These accomplishments, significant as they are, aren't the only reasons for our success. At the heart of Ajanta Pharma is its people.

We cultivated exceptional leadership, developed phenomenal teams, and nurtured a resilient culture of excellence. On this occasion, we would like to thank all our stakeholders, Ajantites, existing and past, customers, suppliers, banks, business partners, associates, and shareholders for their support and contribution leading to Ajanta's success. Let me take you to another important announcement that I would like to make regarding the interim dividend. I'm happy to share with you that Board of Directors have approved first interim dividend of INR 315 crore for the year FY 2024. It translates into INR 25 per share, which is 1,250% for each INR 2 face value share.

This total dividend of INR 25 per share includes a regular dividend of INR 10 per share and an additional INR 10 per share distributed as a special dividend on the commemoration of 50 years of momentous journey of the company. I am happy to share that we started FY 2024 on a strong note. I and our Joint MD will take you through business-wide performance for the Q1, along with the comparison of previous year's same period. Our three verticals of business, branded generic, U.S. generic, and institution business in Africa, generated total revenue of INR 1,021 CR, against INR 951 CR, posting a growth of 7%. During the quarter, 33% of the total sales came from the branded generic, which is spread across India, Asia, and Africa. This business has surety, scalability, and sustainability for the long term.

The sales stood at INR 732 crores against INR 688 crores, posting 6% growth. I invite Mr. Rajesh Agrawal, Joint MD, to take you through our India business. Thank you.

Rajesh Agrawal
Joint Managing Director, Ajanta Pharma

Thank you. Good evening to you all. I'm happy to share key highlights of India business. Our performance has been excellent on the back of market share gains, price increase, and new product launches. India business contributed 32% in the total revenue, with sales of INR 319 crores against INR 279 crores, posting a healthy growth of over 14%. India business includes the revenue from trade generics of INR 36 crores against INR 36 crores. During the quarter, we launched three new products and have pipeline of launches lined up for the coming year. Our MR productivity has improved further in line with the revenue growth, as MR strength remains unchanged.

We continue to grow faster than the IPM by 400 basis points, with Ajanta growing at 15% against IPM growth of 11%, as per IQVIA MAT, June 2023. It was same for the therapeutic segments we are present in, where our growths are much higher than the segment growth. In the covered market, we continue to be fourth largest in IPM and amongst top 10 in all our therapeutic segments. As per IQVIA MAT, June 2023, we gained 1 rank since March 2023 and stood at 26. In our sales, Cardiology contributed 39%, Ophthalmology contributed 31%, and Dermatology contributed 21% of our India business, with remaining 9% coming from the pain segment. Now, I request Mr. Yogesh Agrawal, MD, to take you through the other business performance. Thank you, and over to you.

Yogesh Agrawal
Managing Director, Ajanta Pharma

Thank you. I am now happy to brief you about the branded generic business in Asia and Africa, which contributed 42% in the total revenue during the quarter. Let's start with Asia. In Asia, our business is spread across Middle East, South Asia, and Central Asia, covering about 10 countries. During Q1, the sales was INR 254 crores, against INR 240 crores, growth of 6%. We launched two new products during the Q1 in the region. We maintain our guidance of mid-teen growth for the FY 2024. Let's move to Africa. In Africa, the business is spread over West and Eastern African markets in 20 countries. During Q1, sale was INR 159 crore against INR 168 crores, posting 5% de-growth.

Continued strike in France for pension reforms till mid-May 2023 led to delays in delivery of consignments, which is now normalized. We continue to guide for the mid-teen growth in FY 2024. Let's move to the next vertical, U.S. Generics. U.S. Generics contributed 21% to the total revenue in Q1, with sales of INR 213 crores against INR 139 crores, hosting 19% growth. We expect revenue for the next three quarters to be on the similar level. In Q1, we filed three ANDAs, and expect to file about five ANDAs in rest of FY 2024. We received three final approvals during the quarter and expect to launch 4-5- products in rest of the year. We have 41 products available on the shelf, and 21 ANDAs are awaiting approval with USFDA.

Let's now move to the third and the last piece of our business, which is Africa Institution. This business contributed 6% in the total revenue, which comprises of anti-malarial product. In Q1, the sale was INR 65 crores against INR 77 crores, hosting 16% de-growth. As the supplies are dependent on the procurement agencies' funds availability, it remains unpredictable. I now invite Mr. Arvind Agrawal, CFO, to take you through the financial performance. Thank you. Over to you.

Arvind Agrawal
CFO, Ajanta Pharma

Thank you. Good evening, warm welcome to the first earnings call of FY 2024. We will look at the consolidated financials as always, provide year-on-year comparison. The key financial highlights for Q1 2024 are as follows: Total revenue stood at INR 1,021 crores against INR 951 crores, hosting a 7% growth. Gross margin stood at 75%, which was in line with our guidance for the year. A 2% improvement in the margin is a result of softening API prices and EUR coming back to normal against INR. We expect gross margin to remain at this level for FY 2024.

Personal cost increased by 17%, part of which, about 6%, is on account of regrouping of related expenses from selling expenses, as explained in Q4 FY23 earning call, balance was regular annual increment. Other expenses stood at INR 285 crores in Q1, an increase of 7% over previous year same period. Internal and national logistic cost is now at pre-COVID levels, which has resulted in a benefit of about INR 25 crores, or about 2.5% of export sales against average of FY 2023. R&D expenses was INR 55 crores against INR 54 crores for the quarter, or 5% of revenue. We expect R&D expenses to inch up little in coming quarters and at about 6% for FY2024.

EBITDA margin stood at 26% of revenue from operations at INR 271 crores against INR 222 crores on the back of benefit in gross margin and logistic cost. We retain our guidance of about 25% ±1% EBITDA margin for FY 2024. Other income was at INR 32 crores in Q1, mainly contributed by forex gain of INR 20 crores. Income tax stood at 23% for Q1. We expect it to be same level in FY 2024. Profit after tax in Q1 was INR 208 crores against INR 175 crores, 20% of revenue from operation. We incurred CapEx of INR 26 crores in Q1 FY 2024.

CapEx, including maintenance CapEx for FY 2024, is estimated to be at INR 200 crores, which also includes new corporate house CapEx. With these highlights, I open the floor for the question and answer. Thank you.

Operator

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may enter star and one on your phone telephone. If your questions have been answered and you wish to withdraw yourself from the queue, you may enter star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions queue assembles. To ask a question, you may press star and one. We have the first question from the line of Saumya Garg from Shree Investments. Please go ahead.

Saumya Garg
Investor, Shree Investments

Yeah. Hello. The question is regarding the target which you have set for, say, next 3- to- 4- years for the company, in terms of revenue as well as margin.

Arvind Agrawal
CFO, Ajanta Pharma

See, the 3-4- years is a very little long-term thing, and I think we will not be able to give you the guidance on that. The only thing which we talked generally was that we are expecting mid-teen growth for the next year.

Saumya Garg
Investor, Shree Investments

You said what kind of growth for the next year?

Arvind Agrawal
CFO, Ajanta Pharma

Mid-teen growth.

Saumya Garg
Investor, Shree Investments

Okay, mid-teen growth. Okay.

Arvind Agrawal
CFO, Ajanta Pharma

Yeah.

Saumya Garg
Investor, Shree Investments

Directionally, what kind of revenue and margin trajectory we should look at? I'm not looking for specific guidances, but more of a direction.

Arvind Agrawal
CFO, Ajanta Pharma

As we mentioned earlier, also in Q4, I think the direction is absolutely positive because all the, you know, the levers are there. Branded Generic business is growing, so naturally the direction has to be positive.

Saumya Garg
Investor, Shree Investments

Okay, and for the next couple of years, any big? Hello?

Rajeev Agarwal
AVP, Finance and Investor Relations, Ajanta Pharma

Hi.

Yes, yes. My question was regarding for next couple of years, any big opportunity you are looking at for increasing revenue?

Yogesh Agrawal
Managing Director, Ajanta Pharma

I think it's a culmination of a lot of things coming together, increasing the market share from the existing products and existing people, then launching of the new products, adding more people. All the R&D work which we are doing in the current year or which we have done last year, will come to the light in next year and subsequently. All the things are in a positive direction. There are a lot of work which is happening in the R&D regulatory square, trying to file the dossiers. As we get the approvals, we are able to bring those products to the market. Overall, I think it's a composition of multiple things which will going right.

There is no one single thing which we can point out and say that, you know, one big thing will happen like this.

Rajeev Agarwal
AVP, Finance and Investor Relations, Ajanta Pharma

Any big product launch, lined up in the couple of years can be a big opportunity for the company in terms of market size?

Yogesh Agrawal
Managing Director, Ajanta Pharma

I can't give you anything specific like that, but as I said, in general, all the products which you'll file in USA, let's say, eight this year, they will get approval next year. What we filed last year got approval this year. All those, I think cumulatively, it should add up to giving us the mid-teen growth. That's the aspiration. Second thing is we are always look out to grow faster than the market. Both things put together, we are optimistic about the future growth.

Rajeev Agarwal
AVP, Finance and Investor Relations, Ajanta Pharma

Directionally, you are talking about around mid-teens kind of growth for a couple of years down the line?

Yogesh Agrawal
Managing Director, Ajanta Pharma

You can say directionally, yes, but we don't give out that long guidances. Normally, we just say that, the current, next year, which is current year now. This is the guidance mid-teens we are giving. Directionally, you can say that, yes, that is our aspiration, to grow at a mid-teen.

Rajeev Agarwal
AVP, Finance and Investor Relations, Ajanta Pharma

What about the margin trajectory?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Should remain in the similar vicinity of what we have said for the current year. EBITDA at, we've guided around 25 points. It's %. Around there is what we are looking at, maintaining. Yeah.

Rajeev Agarwal
AVP, Finance and Investor Relations, Ajanta Pharma

Okay, what kind of U.S. business you can look for in next 2, 3 years?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Two, three years, I think, as I said, is a little far away. We don't give out the guidances that way. I think current year we have started off very well in the Q1. We have posted a healthy growth of 17% odd. We've done at INR 214 across the Q1. The rest of the quarters, we can expect similar kind of levels to maintain and also healthy growth despite the challenges which we have seen in the U.S. of price erosion and things like that. A lot of things we are doing right. We should be able to hold on to the current quarter for the rest of the year, rest of the quarters.

Rajeev Agarwal
AVP, Finance and Investor Relations, Ajanta Pharma

As I can see, the ROE of the company has been going down for last 2- 3- years. Any specific things you are looking to increase that?

Yeah, as the, you know, improvement will come in the, you know, EBITDA margin, I think that also will improve positively. One thing is that we have already finished our CapEx, big CapEx to their plant. Now it's only maintenance CapEx which is going to be there, so ROE is going to improve.

Internal targets you have set for this?

No, we don't give out that number. Thank you.

Okay. Thank you.

Operator

Thank you. Ladies and gentlemen, to ask a question, you may enter star and one. We have the next question from the line of Rushee Shetty from Go-Lokal Capital . Please go ahead.

Rushee Shetty
Analyst, Golak Capital

Yeah, thanks for the opportunity and good evening, everyone. Am I audible?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Yes.

Rajeev Agarwal
AVP, Finance and Investor Relations, Ajanta Pharma

Yes.

Rushee Shetty
Analyst, Golak Capital

Yeah. First question is related to the U.S. business. You know, we were planning that, you know, there won't be any incremental capital allocation on the U.S. business, and we will focus more on the branded markets because there was lot of uncertainty. Now, U.S., you know that because of the waiting price erosion and the opportunities are improving due to the supply disruption and all, is the plan changing and we would focus on U.S. also, or, you know, we still stick to the same plan?

Yogesh Agrawal
Managing Director, Ajanta Pharma

No, you rightly said, the U.S. is an evolving landscape scenario, has turntables now. There's a lot of talk about the shortages which are happening in the U.S. market for various reasons, some geopolitical, some compliance with the regulator, things like that. That's an evolving market. Having said that, I think, CapEx we don't need to do because we have enough capacities in the production for whatever products which we have filed and whatever we have work in progress in R&D. Even if we file in next two years and commercialize, we've done the mapping and there are no additional capacities required, maybe in then. There is no significant CapEx required as such otherwise also because we have CapEx. In R&D also, we have enough CapEx which is done, there is enough bandwidth there also.

I think CapEx will otherwise also remain low, whether it is U.S. or non-U.S. OpEx is what we were saying, that we will be very judicious about for the U.S. market, because the cost of filing an ANDA is very high. We still remain that way. We still will continue to be very, you know, putting a lot of filters in product selection because the cost is very high. Having said that, already we filed 3 ANDA in this first quarter, we plan to file at least 5 ANDA in the rest of the year. I think the plans, smart product selection, very robust supply chain, no stock out, no back orders, all that are positive with us, and we will continue to build on that.

Rushee Shetty
Analyst, Golak Capital

Any improvement in the price erosion which you have seen? I remember that the last quarter of, you said that the price erosion in high double digits. What is the price erosion currently in this quarter?

Yogesh Agrawal
Managing Director, Ajanta Pharma

No, it has, thankfully, it has stabilized quite a lot. You would hear this commentary, I think, in multiple con calls of Indian and multinational companies. We are seeing that into the high single digits, as a average, price erosion. Yeah, that has, come down in a normal range, which used to be there earlier also.

Rushee Shetty
Analyst, Golak Capital

Okay. Can you give any update on the varenicline launch, and your update on topiramate and Chantix products? What is happening over there? We still have queries, or we have approvals, or any launch timelines which you can give?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Three products you asked for. First one is the varenicline, that is already commercialized. We did commercialize in last quarter only. I think it's just initial supplies have started. The second is Chantix, that is work in progress.

Arvind Agrawal
CFO, Ajanta Pharma

That is true.

Yogesh Agrawal
Managing Director, Ajanta Pharma

Yeah. That is work in progress for the Chantix. All going up, it depends on the regulatory landscape. From our side, we have given everything what FDA has asked for. There are no more questions from the FDA. Now we're just waiting for the FDA to give us a nod. We are getting ready to launch. All going well, if we get the nod, it could be a Q4 or a next Q1 launch, subject to the regulatory approvals. The third one, the topiramate. That is... I think, we are bound by the some confidentiality which we have signed with the company, which we have settled the matter. I think we'll leave it at that.

Rushee Shetty
Analyst, Golak Capital

Okay. Okay, I have more question. I'll join back.

Yogesh Agrawal
Managing Director, Ajanta Pharma

Thank you.

Operator

Thank you. Participants, if you have a question, you may enter star and one. We have the next question from the line of Kunal Randeria from Nuvama. Please go ahead.

Kunal Randeria
Director - Research, Nuvama Wealth Management

Hi. Good evening, sir. In the domestic business, 14% growth, could you just share how much of that growth was impacted due to medical price cuts in the last quarter?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Medical price cut, we have not calculated the exact impact. The overall impact, we have been able to nullify by way of the growth in volumes that we have tried to push forward. That figure can be worked out and shared with you at a later date, because it's a very kind of an integrated figure on that.

Kunal Randeria
Director - Research, Nuvama Wealth Management

Sure, no problem. Sir, could you share how much, your, you know, domestic revenue?

Arvind Agrawal
CFO, Ajanta Pharma

33%-36% in this quarter.

Kunal Randeria
Director - Research, Nuvama Wealth Management

Right. That is growing at a much, much faster rate. Maybe you would like to share maybe slightly aspirational outlook for the next couple of years from this business?

Arvind Agrawal
CFO, Ajanta Pharma

No, no. Actually, it has grown only by 10%. Last year it was 33, this year it is 36, so it just grown by 10%. Our overall business has grown by 14%, but that was grown by 10% only.

Yogesh Agrawal
Managing Director, Ajanta Pharma

Aspirationally, going forward, I expect it to grow in low double-digit number itself, maybe, between 10% and 12%. That's what we aim for.

Kunal Randeria
Director - Research, Nuvama Wealth Management

Sure. I mean, just slightly larger question on this, you know, one of the bigger competitors, you know, it has entered this business very recently. What is it about this market, you know, all of a sudden making it very attractive for pharma players?

Yogesh Agrawal
Managing Director, Ajanta Pharma

As a matter of fact, most of the large companies have been in this segment for quite some time. We have been very careful and a late entrant as such. Having said that, we have done exceptionally well in the last three years because of our own internal focus and the strategies that we deployed for this segment. This segment continues to be very attractive for all the Indian pharma companies because it operates at a very different kind of a business model. It's growing in low double digits, so it's an attractive market for all of us actually to operate in.

Kunal Randeria
Director - Research, Nuvama Wealth Management

Do you think maybe in the longer run it will cannibalize the branded growth?

Yogesh Agrawal
Managing Director, Ajanta Pharma

you know, this business has been existent in the country for over two decades, and so far we haven't seen that playing out. I don't know really if that's going to play out in the future as well, at least in the near future, foreseeable next five-year horizon. I don't see that as a major threat to the, to the pharmaceutical, prescription pharmaceutical business.

Kunal Randeria
Director - Research, Nuvama Wealth Management

Sure. Sure. Just one last one for NCG. NCG, you mentioned in the presentation that trade costs have gone down sharply. Pre-COVID, it used to be around 4% of revenue. Last year, it was around 6.5%. Do you think it's back to around 4%? We expect it to remain so?

Arvind Agrawal
CFO, Ajanta Pharma

Yeah, I think it should remain at this level now, because these are the levels which have come down now. We expect this to be the level which should be there, and accordingly, that benefit should flow in the PNL.

Kunal Randeria
Director - Research, Nuvama Wealth Management

Copy, sir. Thank you and all the best.

Arvind Agrawal
CFO, Ajanta Pharma

Thank you.

Operator

Thank you. We have the next question from the line of Forum Parekh from BMK Global. Please go ahead.

Rushee Shetty
Analyst, Golak Capital

Yeah, am I audible?

Arvind Agrawal
CFO, Ajanta Pharma

Yes, you are audible now.

Rushee Shetty
Analyst, Golak Capital

Yeah. Okay. Congratulations on the good set of numbers. can you just, so like U.S., has grown by 19%. What are the levers for this growth?

Yogesh Agrawal
Managing Director, Ajanta Pharma

It's been a combination of existing products increasing the market share and some new product launches. Combination of all these things, we've been able to register a good space and good growth.

Rushee Shetty
Analyst, Golak Capital

You just said that, you know, price erosion has come down to lower single digits. Do you see any further de-acceleration of price erosion, or which would, you know, I mean, it will settle at the same price?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Very difficult to predict. Just wanted to correct, I did not say low single digit. I said, high single digit. It's around 8% odd. That's the price erosion this year. No, it's very difficult to predict. You know, U.S. is a very different set of market. Having said that, from visibility we have right now, we feel it should remain in this similar range unless something unexpected happens.

Rushee Shetty
Analyst, Golak Capital

Okay. In India business, I mean, could we have any guidance on number of launches, you know, that we expect in this year?

Yogesh Agrawal
Managing Director, Ajanta Pharma

In this year, we would expect anywhere between 3-5 more launches to come in. We are expecting to launch, first time in the country, product in the cardiovascular segment, you know, anytime soon. Other than that, we would still be in the top three, in the industry to launch those products, which we have lined up for the remaining year.

Rushee Shetty
Analyst, Golak Capital

Okay. Still I think because EBITDA margin has come back, you know, like 25% as guided, with, two, three years down the line, do we expect it to be in the normal four-year fees or, you know, what we have? Any, guidance over there that can be in terms of EBITDA margin in the four-year time?

Arvind Agrawal
CFO, Ajanta Pharma

I think you'll appreciate that such a long-term guidance will be difficult. Directionally, I have always been telling that, yes, we will keep on improving on this, because all the levers are now in place, and we are able to really contain the cost, et cetera, which were beyond our control. There is absolutely no problem on that account, but giving any number will be very, very difficult.

Rushee Shetty
Analyst, Golak Capital

Okay, appreciate that. Thank you.

Operator

Thank you. We have the next question from the line of Rashmi Shetty from Dolphin Capital. Please go ahead.

Rushee Shetty
Analyst, Golak Capital

Thanks for the opportunity, again. I just missed the number. Did you give any guidance on the U.S. sales, for FY 2024?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Yeah, we are saying, a single-digit growth, mid-single digit.

Rushee Shetty
Analyst, Golak Capital

Mid-single digit. I just want to ask one more thing, that, you know, all the expansion plans, like adding full force and registering more products in the Asia and Africa branded business, that we have already completed, right?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Yeah. Big part has been completed. Now, normal increase, whatever happens, but the expansion drive is completed, yeah.

Rushee Shetty
Analyst, Golak Capital

With this, we are also seeing a softening of input costs, and we are seeing all our geographies are expected to do well. Branded, like, you know, mid-teen, even U.S. price erosion will be coming down, which would help, you know, gross margins to improve. Do you think that this 25% EBITDA margin in FY 2024 is very conservative in nature? Or you feel that the investments in other expenses or R&D expenses or something is likely to go up, and that would hold back the expansion in a big way on EBITDA margin?

Arvind Agrawal
CFO, Ajanta Pharma

You're absolutely right, you know, because there are other expenses which are still to be incurred. There are other things also, which, you know, you must have seen R&D expenses in this quarter were just 5%, which we expect that it will inch up to 6%, as I mentioned in my call. I think we are very confident about this 25% ±1% EBITDA margin for this year.

Rushee Shetty
Analyst, Golak Capital

Okay. That's it from my side. Thank you so much.

Arvind Agrawal
CFO, Ajanta Pharma

Thank you.

Operator

Thank you. Participants, if you have a question, you may enter star and one. We have the next question from the line of Akash Deep from Motilal Oswal Financial Services. Please go ahead.

Akash Deep
Analyst, Motilal Oswal Financial Services

Thank you for the opportunity. I have just one question. Does U.S. sales guidance include Chantix's sales as well?

Yogesh Agrawal
Managing Director, Ajanta Pharma

No, no, it doesn't include Chantix.

Akash Deep
Analyst, Motilal Oswal Financial Services

Okay.

Operator

Thank you. We have the next question from the line of Chandragupta , an investor. Please go ahead.

Saumya Garg
Investor, Shree Investments

Yeah, hello, am I audible?

Arvind Agrawal
CFO, Ajanta Pharma

Yes.

Chandra Gupta
Investor, Shree Investments

Okay, yeah. I have two questions. First is, there is a news about the launch of a malaria vaccine recently in Africa on the last. I just wanted to know whether this will have any impact on our Africa sales, you know, institutional as well as. This is the first question. Second question is, the interim dividend, you are calling it as the first interim dividend. Does it indicate there would be more to follow or no? More broadly, does it indicate any shift from buybacks to dividends, you know, as a means of return distribution? Yeah, that's it. Because now that the share price has improved, whether there is any thought process like that to move from buybacks to dividends. That's my question. Thank you.

Yogesh Agrawal
Managing Director, Ajanta Pharma

First question about the malaria vaccine. It's very early to kind of gauge at what impact it will have in the private anti-malaria business market or the institution business. There will be leading up will be some time in Africa. The funding has to be organized. There are certain other challenges of vaccination. If the vaccination is done, at what percentage level, then it's going to take some time, even if it is implemented at full capacity. My assessment would be, it would be very marginal impact, and it will take a long time for it to kind of have a significant impact on the anti-malaria business right now. That is one.

Regarding the dividend, as we have shared in our press release also, we are, we marked the occasion of 50 years of Ajanta's 50th anniversary. On account of that, INR 10 is our normal dividend, which we have paid, which we normally do every year in dividend, and INR 15 was on the occasion of the 50th anniversary. It was the first dividend in the first quarter, so that's why we are calling it first dividend. Let us see during the year, how the things progress and what, how, what kind of cash balance and what kind of approach we take. Unable to guide you or tell you that, what will happen in the course of the year, what kind of dividends will be there.

Chandra Gupta
Investor, Shree Investments

Okay. Thank you. Thanks a lot.

Operator

Thank you. Participants, if you have a question, you may enter star and 1. We have the next question from the line of Amar Maurya from ALFA Securities Private Limited . Please go ahead.

Amar Maurya
Analyst, Alfaccel Securities

you have the one?

Operator

Mr. Maurya, your line has been unmuted. Please proceed.

Amar Maurya
Analyst, Alfaccel Securities

Hi, sir. Thanks a lot for the opportunity. Congratulations for a good margin recovery. Sir, just wanted to understand one thing, this Chantix opportunity, how big the opportunity in U.S.?

Yogesh Agrawal
Managing Director, Ajanta Pharma

We're not going to give you any number, because things may change a lot from now to till that time. Already one player got approval, they could be launching. How many more people are there and what approval they will get, it's difficult to gauge.

Amar Maurya
Analyst, Alfaccel Securities

What would be the size?

Yogesh Agrawal
Managing Director, Ajanta Pharma

As I remember, I think ICY is quite sizable. It's hundreds of million dollars, I think.

Amar Maurya
Analyst, Alfaccel Securities

$100 million, right?

Yogesh Agrawal
Managing Director, Ajanta Pharma

No, INR hundreds of million.

Amar Maurya
Analyst, Alfaccel Securities

Hundreds of million INR.

Yogesh Agrawal
Managing Director, Ajanta Pharma

I think currently, could be a $500 million, but that's not a real sale. Once you do the chargebacks and all that, it could be much lower. It could be $200 million, let's say.

Amar Maurya
Analyst, Alfaccel Securities

Okay, sir. Perfect.

Yogesh Agrawal
Managing Director, Ajanta Pharma

Yeah.

Operator

Thank you.

Amar Maurya
Analyst, Alfaccel Securities

Thank you, sir. Thank you.

Yogesh Agrawal
Managing Director, Ajanta Pharma

Okay, sure.

Operator

To ask a question, you may enter star and one. We have the next question from the line of Kunal Randeria from Motilal Oswal. Please go ahead.

Kunal Randeria
Director - Research, Nuvama Wealth Management

Hi. Thanks for the follow-up. Just one question. When would you need to increase your domestic field force to sustain this mid-teens kind of, you know, growth, in the next time?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Couple of things. One is our projection forecast for the domestic, you know, has been low teens, not the mid-teens. We don't foresee that we need any kind of expansion in the field force. I believe that we have optimum coverage in every specialty, and the increase in the productivity is what will drive our business going forward. We have enough room to grow in every specialty with the existing number of medical representatives.

Kunal Randeria
Director - Research, Nuvama Wealth Management

This, should I assume for the next 2- 3- years, you don't need?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Hard to say two, three years. I would rather, you know, I would rather stick to the current year, at least in the foreseeable nine months, or maybe at least in one year. We don't see any major addition happening. There may be some minor additions or deletions based on the addition in some, in the number of customers that happened in any particular territory, but nothing of significance as such.

Kunal Randeria
Director - Research, Nuvama Wealth Management

Okay. Thank you very much.

Yogesh Agrawal
Managing Director, Ajanta Pharma

Okay.

Operator

Thank you. We have the next question from the line of Mihir Parekh from ASK Investment Managers. Please go ahead.

Mihir Parekh
Analyst, ASK Investment Managers

Yes, my question pertains to the Africa and Asia business. I think for the quarter, the sales growth for Asia year-on-year, and a drop of 5% year-on-year for Africa branded. Africa and Asia both seem to be very volatile, and the first quarter seems to have been relatively weak. Any comments there, and how should we think of it for full year perspective?

Yogesh Agrawal
Managing Director, Ajanta Pharma

as I said in my opening commentary, for Africa, primary reason was the disruption in the supply chain because of the strike in France, which persisted till mid-May. Only I think in the June, the supply chain got restored. Despite that challenges, we have posted a growth. If you see our Q4 was practically INR 100 crore last year. Against that, we have partly recovered and almost INR 168 crore, we postponed with Q1.

Mihir Parekh
Analyst, ASK Investment Managers

Little more on why a strike in France has caused the disruption in French's African sales? I mean, I understand there might be a couple of, you know, countries which are in a way sort of French states, maybe in Africa, by and large. How does this whole thing interplay? I am unable to understand.

Yogesh Agrawal
Managing Director, Ajanta Pharma

No, I will make you understand. The supplies go through France. All the supplies go through France. All the shipments go to France, and from there, the distribution occurs. They were not able to the containers got backed up on the port. Ship was not able to dock. Whatever stock was there in the, from the France onwards to Africa, that got blocked. That was the reason for this disruption, and that is what impacted.

Mihir Parekh
Analyst, ASK Investment Managers

Why are they routed through France? I'm sorry, why are the supplies?

Yogesh Agrawal
Managing Director, Ajanta Pharma

I can't get you into so many details, but that's how the business is done there. That's the way the nature of the business is. It goes through France.

Mihir Parekh
Analyst, ASK Investment Managers

Is it a regulatory requirement or is it more to do with, you know-

Yogesh Agrawal
Managing Director, Ajanta Pharma

Commercial arrangement.

Mihir Parekh
Analyst, ASK Investment Managers

Pardon me?

Yogesh Agrawal
Managing Director, Ajanta Pharma

It's a commercial matter, not a regulatory requirement.

Mihir Parekh
Analyst, ASK Investment Managers

Okay, okay. why has been the Asia sales, relatively weak, you know, 69 growth in Asia?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Yeah. Asia had started off slightly softer this quarter. Having said that, we are expecting in the next two, three quarters, we will bounce back and the growth should come back. There's no particular reason which I can tell you that why the growth have been slightly below what we were expecting it to be.

Mihir Parekh
Analyst, ASK Investment Managers

Would you retain your full year sort of double-digit sort of.

Yogesh Agrawal
Managing Director, Ajanta Pharma

Yes.

Mihir Parekh
Analyst, ASK Investment Managers

Offline guidance for both these brands direct markets?

Yogesh Agrawal
Managing Director, Ajanta Pharma

Yes. Yes.

Mihir Parekh
Analyst, ASK Investment Managers

Right. you, I think you've made a sizable increase in your international field force last year. Would some sort of operating leverage pay off back in the current year?

Arvind Agrawal
CFO, Ajanta Pharma

Not current year. It takes normally for any addition in the field force, it takes about two years for them to really start giving us the advantage. Not this year, but next year onwards, we should definitely get some benefit out of that.

Mihir Parekh
Analyst, ASK Investment Managers

Okay. Thank you, sir. I'll get back to you.

Arvind Agrawal
CFO, Ajanta Pharma

Thank you. Thank you.

Operator

Thank you.

Arvind Agrawal
CFO, Ajanta Pharma

If there are no questions, we can, you know, close it. There is no problem.

Operator

Sure, sir. Mr. Kumar, would you like to make any closing comments?

Arvind Agrawal
CFO, Ajanta Pharma

Yes.

Yogesh Agrawal
Managing Director, Ajanta Pharma

No, thank you, everyone, for joining this call. If there are any further questions that remain unanswered today, please reach out to our investor relations. Thank you. Bye.

Operator

Thank you, members of the management. Ladies and gentlemen, on behalf of Aditya Birla Group, this concludes this conference. Thank you for joining us. You can now disconnect your lines. Thank you.

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