Operating profit margin has slumped from 33.41% to 29.44%, leading to 1.35% decline in operating profit to Rs 220.21 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 22.41% to 23.40%.   Purchase of finished goods cost rose from 2.57% to 4.56%.   Employee cost decreased from 19.78% to 19.75%.   Other expenses rose from 22.73% to 24.76%.   

Other income rose 148.70% to Rs 32.63 crore.  Provision for interest fell 7.36% to Rs 1.51 crore.  

Provision for depreciation rose 10.21% to Rs 30.88 crore.  

Profit before tax grew 6.66% to Rs 220.45 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 46.7 crore, compared to Rs 58.93 crore.  Effective tax rate was 21.18% compared to 28.51%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 17.59% to Rs 173.75 crore.  

Promoters' stake was 70.34% as of 30 June 2021 ,compared to 70.51% as of 30 June 2020 .  Promoters pledged stake was 14.95% as of 30 June 2021 ,compared to 16.15% as of 30 June 2020 .  

Full year results analysis.

Net sales (including other operating income) of Ajanta Pharma has increased 11.66% to Rs 2889.69 crore.  

Operating profit margin has jumped from 26.41% to 34.56%, leading to 46.13% rise in operating profit to Rs 998.56 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 21.51% to 23.23%.   Purchase of finished goods cost fell from 4.31% to 2.94%.   Employee cost decreased from 18.64% to 18.03%.   Other expenses fell from 29.30% to 22.95%.   

Other income fell 71.82% to Rs 25.98 crore.  Provision for interest fell 30.56% to Rs 8.27 crore.  Loan funds declined from Rs 72.87 crore as of 31 March 2020 to Rs 31.27 crore as of 31 March 2021.  Inventories rose to Rs 766.47 crore as of 31 March 2021 from Rs 495.68 crore as of 31 March 2020.  Sundry debtors were lower at Rs 738.43 crore as of 31 March 2021 compared to Rs 775.30 crore as of 31 March 2020.  Cash and bank balance rose to Rs 209.61 crore as of 31 March 2021 from Rs 205.25 crore as of 31 March 2020.  Investments rose to Rs 175.67 crore as of 31 March 2021 from Rs 79.42 crore as of 31 March 2020 .  

Provision for depreciation rose 21.28% to Rs 116.09 crore.  Fixed assets increased to Rs 1,638.51 crore as of 31 March 2021 from Rs 1,592.29 crore as of 31 March 2020.  Intangible assets declined from Rs 11.71 crore to Rs 10.79 crore.  

Profit before tax grew 34.78% to Rs 900.18 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 246.31 crore, compared to Rs 196.27 crore.  Effective tax rate was 27.36% compared to 29.56%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 39.81% to Rs 653.87 crore.  

Equity capital decreased from Rs 17.54 crore as of 31 March 2020 to Rs 17.39 crore as of 31 March 2021 .  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 70.34% as of 31 March 2021 ,compared to 70.51% as of 31 March 2020 .  Promoters pledged stake was 15.49% as of 31 March 2021 ,compared to 17.29% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 576.31 crore for year ended March 2021 from Rs 456.77 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 171.61 crore, compared to Rs 239.42 crore during the year ended March 2020.  

Other Highlights

In Q1FY22, India sales increased 32% and exports increased by 6% on YoY basis.

During the quarter ending June 2021, sales from emerging markets increased by 7%, US generics business grew by 13% and Africa business decreased by 13% compared to Q1FY21.

In Q1FY22, cardiology segment grew by 14%, Ophthalmology grew by 17%, Dermatology grew by 21% and Pain Management grew by 30% compared to Q1FY21.

Capex for Q1FY22 was Rs 45 crore compared to capex of Rs 31 crore in Q1FY21.