Credit rating agency, CARE has reaffirmed the assigned ‘A+/A1’ rating to long-term/short-term bank facilities of Ajanta Pharma for Rs 120.00 crore. The agency has also reaffirmed the assigned ‘A1’ rating to the short-term bank facilities of the company for Rs 35.00 crore.
Further, the agency has also reaffirmed the assigned ‘A+’ rating to long-term loans of the company for Rs 67.87 crore.
The ability of the company to achieve the projected sales and profitability remain the key rating sensitivities. However, the ratings continue to be constrained by the long working capital cycle, volatile nature of raw material prices and increasing competition in the domestic formulation market from multinationals and Indian drug manufacturers.
Ajanta Pharma is engaged in manufacturing and marketing of pharmaceutical formulations. The company’s product portfolio includes around 200 active products including line extensions catering to various therapeutic segments including Cardiovascular Diseases (CVD), Dermatology, Pediatrics, Ophthalmology, Nephrology, Orthopaedic, amongst others.
