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Informist, Thursday, Feb. 6, 2025

By Narayana Krishna

HYDERABAD - Aurobindo Pharma Ltd. reported a consolidated net profit of INR 8.46 billion, down 9.7% on year, for Oct-Dec, missing the analysts' estimates of INR 9.30 billion. The company reported a fall in its net profit growth after six quarters. 

The company consolidated revenue for the quarter rose 8.5% on year to INR 79.79 billion. The revenue growth was slightly better than the September quarter, but weak compared to earlier four quarters. Sequentially, the company's net profit rose 3.5% while revenue rose by 2.3%.

The company total expenses rose 11% on year to INR 69.4 billion, while other expenses, mainly related to new plants in Kakinada, rose 18.2% on year to INR 19 billion, impacted the company's December quarter earnings. The company raw material costs for the quarter rose 2% on year to INR 27.3 billion, while employee benefit costs rose 14.3% to INR 11.3 billion. Higher other expenses, related to new plants and lower US sales, impacted Aurobindo Pharma's Oct-Dec net profit.

For the nine months ended December, the company net profit was at INR 25.82 billion against INR 22.64 billion a year ago. Revenue for Apr-Dec was at INR 233.42 billion against the INR 214.22 billion a year ago.

Aurobindo overall formulations sales for December quarter rose 10.8% led by growth in Europe and growth markets, while the US has seen a decline.

In the US, which accounts for 46% of the sales, the company reported a 2.3% on-year fall in revenues to INR 36.7 billion due to lower transient product sales, Aurobindo Pharma said in a press release. In dollar terms, the company sales fell by 3.7% on year to $435 million. The company launched seven products in the US during the quarter.

The company's Europe revenue, which accounts for 26.6%, increased 22.7% on year to INR 21.2 billion. In growth markets, the company reported a 39.3% on-year growth in revenues to INR 8.7 billion. Growth market accounts for 11% of Aurobindo Pharma's total sales. In India, which falls under the growth market segment, reported INR 700 mln revenue for the quarter.

The anti-retroviral segment revenue for the quarter rose 71.2% on year to INR 3.07 billion. This segment accounted for nearly 4% of the total sales and Aurobindo Pharma was one of the leading supplier of the ARV products to global healthcare and aid agencies. The segment sales mostly depend on the tender-driven supplies.

The active pharmaceutical segment sales fell 1.6% on year to INR 10.1 billion, contributing 12.6% of the total sales.

Aurobindo Pharma earnings before interest, tax, depreciation and amortisation or EBITDA for the quarter was at INR 16.28 billion, against INR 16.01 billion a year ago. EBITDA margin for the December quarter fell by 138 basis points on year to 20.4%.

Aurobindo Pharma reported its Oct-Dec spending on research and development at INR 4.5 billion, 5.6% of the total revenues.

Aurobindo Pharma board today approved purchases of 80% of the equity in Tergene Biotech Ltd, a step-down subsidiary of the company, making it a wholly owned subsidiary of the company for a cash consideration of INR 107.6 million, the company said in an exchange filing.

The company declared its financial results for the December quarter after market hours. On Thursday, shares of Aurobindo Pharma ended flat at INR 1,191.80 on the National Stock Exchange.  End

US$1 = INR 87.57

Edited by Akul Nishant Akhoury

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