Ajanta Pharma rallies 14% on stellar Q4 earnings, share buyback proposal

Ajanta Pharma shares on Friday, May 3, rallied nearly 14% to hit a year high after the company reported stellar financial results for the March quarter.

The stock zoomed 13.69% to hit ₹2,540 per share on the NSE, its 52-week high. More than 14 lakh shares of Ajanta Pharma changed hands on NSE.

Ajanta Pharma shares later pared some of the gains to trade 5.98% higher at ₹2,367.55 per share on NSE at 11.50 am.

Ajanta shares zoom on stellar Q4 FY24 performance

Ajanta Pharma Ltd, a speciality pharmaceutical formulation company, reported a 20% jump in revenue to ₹1,054 crore for the March quarter against ₹ 882 crore in the year-ago period.

Its EBITDA rose by 86% to ₹278 crore in the March quarter compared to ₹149 crore in the last quarter of FY23. EBITDA margins were at 26%.

Profit after tax jumped 66% year-over-year to ₹203 crore in the March quarter against ₹122 crore in the year ago period.

For the full fiscal, revenue from operations rose by 12% to ₹4,209 crore against ₹3,743 crore in FY 2022-23. EBITDA was at ₹1,172 crore in 2023-24 against ₹783 crore in the previous year. Profit after tax rose by 39% to ₹816 crore in FY24 against ₹ 588 crore in the previous year.

Ajanta Pharma announces ₹351 crore share buyback

Ajanta Pharma in a release stated that the company generated a robust cash flow of ₹ 812 crore with an impressive cash conversion ratio of 69%.

The board of directors has approved the distribution of ₹351 crore to shareholders in the form of a buyback, including tax.

The buyback will involve purchase of 10,28,881 equity shares at a price of ₹ 2,770 per equity share, constituting 0.82% of the total paid-up equity share capital. The share buyback price is at 23% premium to Thursday’s closing price.

Ajanta Pharma is a speciality pharmaceutical formulation company having major focus on branded generic business across India, Asia and Africa.