Aurobindo Pharma Q1 Results: Profit Falls 32%, Misses Estimates

Aurobindo Pharma Ltd.'s first-quarter profit fell, missing estimates.

The Hyderabad-based bulk and generic drugmaker's net profit declined 32% year-on-year to Rs 521 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 620-crore consensus estimate of analysts tracked by Bloomberg.

Aurobindo Pharma Q1 Highlights (YoY)

• Revenue was up 9% to Rs 6,236 crore against an estimate of Rs 5,964 crore.

• Ebitda was down 20% at Rs 965 crore against the Rs 1,054-crore forecast.

• Margin stood at 15.5% against 21.2%. That compares to the forecast of 17.7%.

Other Highlights (YoY)

• Active pharmaceutical ingredients business grew 12% to Rs 907 crore.

• Revenue from formulation of finished drugs rose 9% to Rs 5,329 crore.

• U.S. formulation business rose 11% to Rs 2,971 crore, contributing to around 48% of the total revenue.

• The company launched seven new products and five injectables in the U.S., this quarter. It also received final approval for 10 ANDAs including four injectable products from the U.S. FDA.

• Revenue from Europe fell 2% mainly due to depreciation of the Euro, said the company in its filing. The geography accounted for around 25% of the total sales.

• Growth-markets revenue including domestic formulation sales jumped 31%.

• Anti-retroviral formulations revenue increased by 28%.

• Research and development stood at Rs 310 crore and constituted 5% of revenues. That compares to 6.3% in the June-quarter last year.

K Nithyananda Reddy, vice-chairman and managing director, said in the filing that investments in product portfolio continued at a healthy pace as reflected in the filings and launches in the quarter.

"Our focus on the development of specialty products pipeline will establish new avenues to grow the business in future."

This along with their aim to drive sustained improvement in profitability through newer avenues will enhance improved profitability over medium to long term, he said.

Shares of Aurobindo Pharma closed 1.98% higher ahead of the earnings, compared with a 0.88% rise in the benchmark S&P BSE Sensex.