Dr Kannan Vishwanath, Vice Chairman & Managing Director of Aanjaneya Lifecare Ltd in an exclusive interview to Satya Brahma, Editor-In-Chief of Pharmaleaders Group spoke on wide gamut of business & expansion plans including the decline of share prices due to tough market conditions. Aanjaneya Lifecare Ltd stock was trading at Rs.299.80, down by Rs.15.75 or 4.99%. The stock hit an intraday high of Rs.299.80 and low of Rs.299.80.The total traded quantity was 213 compared to 2 week average of 21517.
1. According to data available with the stock exchanges, shares of Core Projects tumbled 62 per cent and was the biggest loser on the entire BSE, while scrips of Aanjaneya Lifecare, Sudar Inds, Flexituff, ABG Shipyard, Welcorp and Gemini Comm crashed by 20 per cent each. Any Specific Reasons?
Answer: If you look at the overall scenario, you will get a clear indication that some of the biggest Midcaps have been losing grounds primarily because of the toughest market conditions & Aanjaneya Lifecare is not an exception. We are definitely disturbed as trading in stock exchange has become challenging but this is a temporary phase, we have a strong growth plans & we are gearing for top gear with our ambitious plans. The Board of Directors of Aanjaneya Lifecare Ltd at its meeting held on March 05, 2013, have decided that the date of opening of issuance of FCCB up to USD 75 million is on March 12, 2013. Of late, we find a huge fluctuation in the market prices of our scrip and it is disturbing for us. In order to achieve the growth plans of the Company, we are in dialogue with our International Bankers for raising resources for the expansion through FCCB. The international investors are cautious due to wide fluctuation in the market price of our scrip."
2. The S&P BSE mid-cap index fell by 1.20 per cent and S&P BSE small-cap index lost 1.36 per cent.What are the reasons for this decline?
Answer: As explained earlier, this is a volatile market conditions in all S&P BSE mid-cap index. You can’t expect healthier trading every day. Please look at our performances in our Annual Report, we have outpaced industry standards. While it will take sometimes to gain the momentum, we are confident of good numbers. No need for Investors to be panic. Investors can be assured of their returns as they have been getting earlier. Global Market volatility is also one of the factor. The midcap universe came under pressure largely on account of concerns about their earnings as some of them have reported Q3 numbers, which came below market expectations.
3. While your Net profit declined by 13.9 per cent to Rs.10.45 crore from Rs.12.14 crore, though its net sales increased sharply by 35.6 per cent to Rs.145.86 crore from Rs.107.58 crore. What is your expectations from the next quarter?.
Answer: Please look at our announcement which is much healthier. With new capacities to be added in next 6 to 9 months the company will be expanding operations in emerging markets of South East Asia, Africa & South & Central America and its domestic operation in branded generics segment. The Company has reported a growth in the total Sales to the extent of 35.58% at Rs 1458.64 million during the third quarter ended 31st December 2012 compared to Rs 1075.78 million during the same period last year. The net profits for Q3 amounted to Rs 104.53 million as against Rs 93.37 million for the previous quarter ended 30th September 2012 and Rs 121.42 million for the corresponding period of previous year ended 31st December 2011. We will have a bigger chunk in next quarter though I can’t specify the numbers, it will definitely be bigger.
4. Aanjaneya Lifecare has been a dark horse in Pharma Scrips since its IPO in 2009 as it has been consistently performing. Why there is a sudden fall?
Answer: As I have mentioned in my earlier note, we have a sound financials with a robust processs mechanism. Our Corporate Governance is our biggest strength. We have no huge debtors like other Pharma Companies. We have recorded good performance in a difficult period and the future is bright. We are seeing a promising period for the company one in which we could achieve our goals set towards customer satisfaction, quality standards and of course shareholder value. We will keep the growth momentum focused & visible. Coming Days will spell out our success in overseas markets.