On Friday, Ajanta Pharma shares surged over 9% in the early morning trade to hit a 52-week high of Rs 1,697.95 after the business reported healthy earnings for the April-June quarter.

The pharmaceutical company posted a 19.2% jump in net profit for Q1FY24 to Rs 208.1 crore versus Rs 174.6 crore in the same quarter of the previous year.

During the period under review, revenue touched Rs 1,021 crore, marking a growth of 7.4% versus Rs 950.9 crore in the same period of the preceding fiscal.

Quarterly growth was led by a double-digit upsurge in sales from the India and US generics sections, which offset weakness in the African market. Within the Indian market, growth was determined by cardiology, ophthalmology, pain supervision and dermatology therapies.

At 10.58 am, shares traded 7.89% higher at Rs 1,675 on the NSE.

Ajanta Pharma’s operating level EBITDA margin was chronicled at 16.9%, lower than the 23.3% noted in the base quarter. 

Moreover, research and development (R&D) outlays were Rs 55 crore during the quarter, which resembles about 5% of the overall revenue. R&D spending in the preceding quarter was Rs 54 crore.

During Q1, Ajanta Pharma also witnessed progress in its drug applications. It acknowledged final approval for 3 abbreviated new drug applications (ANDAs) and filed 3 new ANDAs. Out of 49 final ANDA approvals, the company fruitfully launched 41 products in the market. Besides, Ajanta Pharma holds 3 tentative approvals, and it has 21 ANDAs pending approval from the US FDA.