Profits Fall 41%, Miss Estimates


Aurobindo Pharma Ltd.’s second-quarter profit fell year-on-year, missing estimates.

The Hyderabad-based bulk and generic drugmaker’s net profit declined 41% year-on-year to Rs 409 crore in the quarter-ended September, according to its exchange filing. That compares with the Rs 599-crore consensus estimate of analysts tracked by Bloomberg.

Aurobindo Pharma Q2 Highlights (YoY)

  • Revenue was down 3% to Rs 5,739 crore against an estimate of Rs 6,257 crore.

  • Ebitda was down 30% at Rs 837 crore against the Rs 1,026-crore forecast.

  • Margin stood at 14.6% against 20%. That compares to the forecast of 16.4%.

Other Highlights (YoY)

  • Active pharmaceutical ingredients business grew 24% to Rs 969 crore and made up 17% of the revenues.

  • Overall formulations revenue fell 8%.

  • U.S. formulation business fell 11% to Rs 2,638 crore, contributing to around 46% of the total revenue.

  • The company launched six new products and two injectables in the U.S., this quarter. It also received final approval for nine ANDAs including five injectable products from the U.S. FDA.

  • Revenue from Europe fell 9% mainly due to depreciation of the Euro, said the company in its filing. The geography accounted for around 26% of the total sales.

  • Growth markets revenue including domestic formulation sales rose 17% and contributed to 8% of the revenue.

  • Anti-retroviral formulations revenue increased by 13% making up for 3% of the revenue.

  • Research and development stood at Rs 276 crore and constituted 4.8% of revenues.

K Nithyananda Reddy, vice-chairman and managing director said in the filing, “Our Q2FY23 performance was subdued, mainly due to the macro-environment factors and higher competitive intensity for some products in the U.S.”

However, they are confident that their robust pipeline of new products will provide impetus to the future growth trajectory, he said.

“Our continued focus on biosimilar, R&D, innovation and increasing manufacturing capacity will enhance our product offerings, in various markets. We are confident that, the right measures and growth-led strategies will help improve our profitability and margins over the medium to long term.”

Shares of Aurobindo Pharma closed 2.3% higher on Friday, compared with a 1.95% rise in the benchmark S&P BSE Sensex. This came after the company hit a 52-week low in the previous session, after the company’s whole-time director P Sarath Chandra Reddy was arrested by the Enforcement Directorate.


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