Despite the challenging year wegenerated net cash flow from operatingactivities of र 375 cr. which allowed us to fund our entire capex for the year frominternal accruals. We have been proactive in terms of capacity building to meet ouremerging needs for the next 5 years along with bringing efficiency.
Performance for the last financial year was in line with ourexpectation where we could withstand the sharp decline in institution business byrecouping it with growth in other segments. Our strategy to de-risk the business throughdiversification of portfolio across markets segments and products proved to be veryuseful.
We used this opportunity to build efficiency across the organisationthrough productivity enhancement cost rationalisation capacity building and above allremaining agile for our next phase of growth.
We continue to be passionate about finding unmet medical needs of ourcustomers and use our R&D capabilities to fulfil the same ahead of competition. Ourconcentrated strategy in terms of selected markets and therapies along with on-groundpresence in each market has been instrumental in ensuring sustainability of our businessfor long-term.
Our branded generic business in India grew 16% against industry growthof 11% as per IMS MAT March 2019. During the year we launched 28 products in brandedgeneric space in the country. We aspire to continue beating industry growth withreasonable margin on the back of strong brands and new product launches.
In other emerging markets of Asia and Africa our branded generic salesremained almost flat as a result of pipeline filling in the previous year that gotnormalised. Our brands in all our key markets continue to post satisfactory growthreflecting strong inherent fundamentals built over the years. We continue to build morebrands in these markets and are very positive about the same.
The anti-malarial institutional business of Africa faced a sharpdecline as guided in the beginning of FY 2019. It came down by 49% in FY 2019 compared toprevious year. We have been always upfront about the nature of such institutionalbusinesses being lumpy in nature where there is always uncertainty about itscontinuation. We expect this business to remain uncertain in coming years.
US generics industry saw some stability after last year's sharp priceerosion but with increasing cost of servicing that market continues to pose challengesfor Indian players. We registered strong growth of 46% at the back of 8 new productlaunches during the year. We remain optimistic about growth from this market with 10-12new filings every year.
Consolidated income from operations was lower at र 2055 cr.against र 2131 cr. in the previous year. The major impact was from Africa'santi-malarial institutional business. While this is the first annual decline of revenuefor Ajanta over the last 15 years we remain confident of future opportunities with ourcarefully selected product pipeline for the generics market in US and branded generics inIndia and other emerging markets.
Our EBITDA (Earnings before interest tax depreciation andamortisation) margin fell by over 250 basis points to 28% in FY 2019 as operationalexpenses from our two new facilities at Dahej and Guwahati are fully charged to P&L.The capacity utilisation at both these plants are low as we are in the process ofgradually ramping up product approvals from these facilities. Our net profit for FY 2019consequently declined by 17% to र 387 cr.
Despite the challenging year we generated net cash flow from operatingactivities of र 375 cr. which allowed us to fund our entire capex for the year frominternal accruals. We have been proactive in terms of capacity building to meet ouremerging needs for the next 5 years along with bringing efficiency.
We would like to take this opportunity to thank our dedicated employeesfor their passion with which they continue to contribute to the culture of excellence.
We thank you all for your continued support in our growth. And we hopethat you will continue to repose your faith in us.
|Warm regards || |
|yogesh M. agrawal ||rajesh M. agrawal |
|Managing Director ||Joint Managing Director |