Aurobindo Pharma Q3 Results: Profit Misses Estimates, Revenue 'Highest Ever'

Aurobindo Pharma Ltd.'s third-quarter profit decreased 9.7% and missed analysts' estimates even as the company claimed to have clocked its "highest-ever" quarterly revenue.

The Hyderabad-based bulk and generic drugmaker posted a profit of Rs 846 crore in the quarter ended Dec. 31, 2024, according to an exchange filing on Thursday. That compares with the Rs 893-crore consensus estimate of analysts tracked by Bloomberg.

Aurobindo Pharma Q3 FY25 Highlights (Consolidated, YoY)

• Revenue up 8.5% to Rs 7,979 crore versus Rs 7,352 crore (Bloomberg estimate: Rs 7,816 crore)

• Ebitda up 1.7% to Rs 1,628 crore versus Rs 1,601 crore (Estimate: Rs 1,648 crore)

• Margin narrows to 20.4% versus 21.8% (Estimate: 21.1%)

• Net profit down 9.7% to Rs 846 crore versus Rs 936 crore (Estimate Rs 893 crore)

The company's revenue, excluding a transient product, demonstrated growth of 12% year-on-year. However, the Ebitda margin was affected by two primary factors — a Rs 50 crore year-on-year increase in research and development expenses, and reduced sales of the aforementioned transient product. Elevated employee costs also contributed to the margin impact.

US revenue decreased 2.3% to Rs 3,671 crore, mainly driven by lower transient product sales and accounted for 46.0% of consolidated revenue. The company has launched seven products during the quarter. The Europe revenue increased by 23% to Rs 2,121 crore and accounted for 26.6% of the consolidated revenue

Revenue in the growth markets formulations increased 39% to Rs 873 crore and accounted for 10.9% of the consolidated revenue. Domestic formulation sales for the quarter stood at Rs 70 crore.

The active-pharmaceuticals-business revenue decreased 1.6% to Rs 1,006 crore, contributing to 12.6% of the consolidated revenue.

"We are pleased to report our highest-ever quarterly revenue, driven by volume growth from our diverse and expanding product portfolio coupled with new launches," Managing Director K Nithyananda Reddy said. "This performance highlights our resilience."

"Looking ahead, we are enhancing our manufacturing capabilities and ramping up our specialty and injectable business. With these initiatives, we expect notable profitability improvements and are well-positioned to sustain growth and meet our objectives for the year," Reddy said.

Shares of Aurobindo Pharma closed flat in the NSE on Thursday, compared to a 0.39% decline in the benchmark Nifty.