Aurobindo Pharma slumps 3% after weak Q4 numbers

Shares of Aurobindo Pharma plunge over 3 percent in morning trade on May 29, a day after the company posted a 12 percent year-on-year decline in net profit at Rs 506 crore in the March quarter of the financial year 2022-23. Sequentially, Aurobindo’s net profits climbed by 3 percent from the profit of Rs 491 crore in December 2023 quarter.

In terms of revenue, the Hyderabad-headquartered drugmaker recorded an 11 percent gain in revenue at Rs 6,473 crore in Q4FY23 compared to Rs 5,809 crore in the corresponding period of the preceding fiscal.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q4FY23 stood at Rs 1,002 crore, marking a 3 percent increase from Rs 974.4 crore in Q4FY22. The margin, however, slumped by 130 basis points to 15.5 percent from 16.8 percent in the year-ago quarter.

One basis point is one-hundredth of a percentage point.

Here are the highlights of Aurobindo Pharma’s March quarter earnings:

— The company’s US formulations revenue increased by 11.6 percent YoY to Rs 3,045 crore, accounting for 47 percent of consolidated revenue.

—  Europe revenue in Q4FY23 amounted to Rs 1,660 crore, accounting for 25.6 percent of consolidated revenue.

—  Growth markets revenue experienced rose 51.2 percent YoY to Rs 592 crore.

— Antiretroviral (ARV) business revenue amounted to ?159 crore, accounting for 2.5 percent of revenue.

— API (active pharmaceutical ingredient) business revenue grew by 11.4 percent YoY to Rs 1,017 crore.

— Aurobindo Pharma received final approval for 26 Abbreviated New Drug Applications (ANDAs), including four injectable products, from the US Food and Drug Administration (USFDA).

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Aurobindo Pharma saw a decent performance in the March quarter, driven by stable demand and pricing across product portfolios and geographic markets, vice chairperson and managing director K  Nithyananda Reddy. said.

He reiterated the company’s commitment to executing growth strategies, launching new products, and focusing on operational efficiencies.

At 10.52 am Aurobindo Pharma was trading 3.03 percent lower at Rs 596.25 on the National Stock Exchange.

Brokerage firm Investec maintained a “buy” rating on Aurobindo Pharma with a target price of Rs 560 per share. The company has shown strong performance in the US market, with margin improvement driving minor EBITDA to beat expectations, it said.

Growth was seen in sales and the Rest of the World and non-betalactam API sales, surpassing expectations. However, ARV sales were weak and below expectations, while other businesses were largely in line, resulting in overall in-line sales, Investec said.

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