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Aurobindo Pharma
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But for the forex loss…….
Posted by :
vtycoonTracked by: 0 Boarder
At a glance, one would think that Aurobindo Pharma has posted its highest ever earnings for the second quarter ended 30th September 2008. At least that is what the Press Release headline states. But on closer scrutiny, a different picture emerges.
Though the consolidated total income of the company for Q2FY09 on a YoY rose 13% at Rs.709.5 crores, its forex loss was huge at Rs.105.10 crore. This affected the entire profitability of the company due to which it posted a PAT at Rs.38.50 crore, as against a Rs 100-crore profit in the corresponding quarter of previous financial year.
But for the forex loss, the company has indeed had an excellent quarter. Its PBT before Forex loss stands at Rs.84.2 crores, up by 37.4%. PAT before Forex loss was at Rs.66.7 crores thus growing by 68.8%.
The surge in the income was led by the increase in formulation sales, which grew by 33.3% at Rs. 319 crore. US markets showed a growth of 103%.
During the current Q2, the company also filed five abbreviated new drug applications, and three drug master files in the US. As on 30.09.2008, 79 ANDAs have been approved in USA including 21 tentative approvals. The Company has so far launched 39 products in the USA market.
The company has indeed had a very good quarter and hopefully, it will be able to tide over this forex crisis. Pharma stocks might not be the flavour of the season right now, yet this remains a good stock. ...
Aurobindo becomes a generic player....
Posted by : marketmanTracked by: 0 Boarder
Present price of 120 levels is very good for investment.... investors of one year period may get gains of 100% from this price of 125.......
In reply to:
Aurobindo becomes a generic player....
Posted by : marketman
Among the largest `Vertically Integrated` pharmaceutical companies in India, Aurobindo has robust product portfolio spread over major product areas encompassing CVS, CNS, Anti-Retroviral, Antibiotics, Gastroenterologicals, Anti-Diabetics and Anti-Allergic with approved manufacturing facilities by USFDA, UKMHRA, WHO, MCC-SA, ANVISA-Brazil for both APIs & Formulations and has Global presence with own infrastructure, strategic alliances, subsidiaries & joint ventures.
Aurobindo’s R & D strengths lie in developing intellectual property in non-infringing processes and resolving complex chemistry challenges. In the process, Aurobindo develops new drug delivery systems, dosage formulations and applies new technology for better processes. 
Aurobindo becomes a generic player....
Posted by : marketmanTracked by: 0 Boarder
Among the largest `Vertically Integrated` pharmaceutical companies in India, Aurobindo has robust product portfolio spread over major product areas encompassing CVS, CNS, Anti-Retroviral, Antibiotics, Gastroenterologicals, Anti-Diabetics and Anti-Allergic with approved manufacturing facilities by USFDA, UKMHRA, WHO, MCC-SA, ANVISA-Brazil for both APIs & Formulations and has Global presence with own infrastructure, strategic alliances, subsidiaries & joint ventures.
Aurobindo’s R & D strengths lie in developing intellectual property in non-infringing processes and resolving complex chemistry challenges. In the process, Aurobindo develops new drug delivery systems, dosage formulations and applies new technology for better processes....
Aurobindo Pharma Gains 10 %
Posted by : zoombusinessTracked by: 0 Boarder
Aurobindo Pharma Gains 10 Pct After It Said On Friday It Received An Approval From The U.S. Fda To Make And Market A Generic Drug...
Aurobindo Pharma surges on US nod for generic drug
Posted by : zoombusinessTracked by: 0 Boarder
Aurobindo Pharma surged 4.29% to Rs 118 at 9:56 IST on BSE, on receiving final approval from the US Food & Drug Administration for manufacturing and marketing Sertraline hydrochloride in 20 miligram strength.
The company made this announcement after trading hours on Friday, 7 November 2008.
On BSE, 2,587 shares were traded in the counter. The stock had an average daily volume of 37,059 shares in the past one quarter.
The stock hit a high of Rs 119 and a low of Rs 116 so far during the day. The stock has a 52-week high of Rs 584.50 on 16 November 2007 and a 52-week low of Rs 101.60 on 6 November 2008.
The small-cap stock had underperformed the market over the past one month till 7 November 2008, declining 58.21% as compared to the Sensex�s decline of 14.80%. It had also underperformed the market in the past one quarter, declining 62.29% as compared to the Sensex�s decline of 34.09%.
The company�s current equity is Rs 26.88 crore. Face value per share is Rs 5.
Sertraline hydrochloride oral concentrate is the generic equivalent to Pfizer�s Zoloft oral concentrate. The drug is used for the treatment of major depressive disorder in adults.
On 10 October 2008, Aurobindo Pharma received US Food & Drug Administration (USFDA) approval to manufacture and market Cyclobenzaprine hydrochloride tablets in multiple strengths.
Aurobindo Pharma reported a net loss of Rs 38.50 crore in Q2 September 2008 as compared to net profit of Rs 100.92 crore in Q2 September 2007.
Aurobindo Pharma is engaged in developing, manufacturing and marketing active pharmaceutical ingredients, intermediates and generic formulations.
C M NEWS--
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BSE Announcements on Aurobindo Pharm
Posted by : MMB MessengerTracked by: 0 Boarder
Aurobindo Pharma Ltd has informed BSE regarding a Press Release dated November 07, 2008 titled "Aurobindo Pharma receives final approval for Sertraline Hydrochloride Oral Concentrate"...
NSE Announcements on Aurobindo Pharm
Posted by : MMB MessengerTracked by: 0 Boarder
Aurobindo Pharma Ltd has informed the Exchange regarding a press release dated November 07, 2008, titled, "Aurobindo Pharma receives final approval for Sertraline Hydrochloride Oral Concentrate". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements)....
Aurobindo business model is strong, but....
Posted by : marketmanTracked by: 0 Boarder
Many of its holders might had thinking for four digit mark, a year ago.... but scrip is falling into double digit mark now....
The one main mistake of taking fccb debt is causing much damage to its investors.... it looks like that employees and supliers enjoyed a lot with this borrowed money where as innocent investors unnecesarily suffered a lot....
Company may post profit in Q3 results due to appreciating of rupee with the MTM profit in forex.... however its profit margins may affect little bit due to weakning of the dollar....
It looks like that very bad situation that company is facing financially at the moment and it could be a challenge for top management to resolve the problems through sensible restructuring....
Long term fundamentals intact with the support of high quality mega manufacturing capacities but investors lost not only the money but also the patience/confidence in recent months....
OBAMA win in US may be useful for company like aurobindo as the company is welknown for low cost high quality medicines.... pl note that the comapny is having record number of approvals for american market and still getting usfda approvals with the record pace....
Only the brave hearted investors might have been buying the stock on every day declines.... pl note that even investors/holders of five years do not have profits in the counter at the moment.......
Aurobindo Pharma
Posted by : GuestTracked by: 0 Boarder
The target appears to be 68. Good buy at 68 or below....
In reply to:
Aurobindo Pharma
Posted by :
suresh_esg
Not necessary. You should be able to sell at around 250 in the open market itself!!. If not, you should be able to sell this at a much higher price to one of them!!!
Aurobindo Pharma
Posted by : suresh_esgTracked by: 0 Boarder
Not necessary. You should be able to sell at around 250 in the open market itself!!. If not, you should be able to sell this at a much higher price to one of them!!!...
In reply to:
Aurobindo Pharma
Posted by : guptaone
don`t worry, today i hv entered at 105 n shall add again at 85 levels if it comes to! if management doesn`t deliver, let us sell @250+ our stake to pfizer/glaxo or atleast to ranbaxy.....what say? - tks n regds - gupta.
Aurobindo Pharma
Posted by : GuestTracked by: 0 Boarder
well said friend but the promotors are seeking some regulatory nod for buy back the stcok the week investors will be thrown out by the present fall the promotors too might have a role in this fall of the share price...
In reply to:
Aurobindo Pharma
Posted by : guptaone
don`t worry, today i hv entered at 105 n shall add again at 85 levels if it comes to! if management doesn`t deliver, let us sell @250+ our stake to pfizer/glaxo or atleast to ranbaxy.....what say? - tks n regds - gupta.
Strong BUY --> UTV & Aurobindo
Posted by : GuestTracked by: 0 Boarder
Buy UTV at this level
Buy Aurobindo at 95 -100....
Aurobindo Pharma
Posted by : guptaoneTracked by: 0 Boarder
don`t worry, today i hv entered at 105 n shall add again at 85 levels if it comes to! if management doesn`t deliver, let us sell @250+ our stake to pfizer/glaxo or atleast to ranbaxy.....what say? - tks n regds - gupta....
In reply to:
Aurobindo Pharma
Posted by :
aftek infosys
What to do with this stock? Falling badly every day.
Aurobindo Pharma
Posted by : aftek infosysTracked by: 0 Boarder
What to do with this stock? Falling badly every day....
where FCCBs money is deployed?
Posted by : eashwarTracked by: 0 Boarder
You have explained it very well.
The situation looks very bleak indeed. The worst part is we the lay investors bought shares of aurobindo and other companies looking at their growth numbers. We did not notice their fccb exposure or even if we saw it, never understood the implications of it due to FE fluctuations. It becomes apparent when they start reporting losses or slower growth number by which time it is too late for any action.
Some people predict that Re will strenthen in a years time to level of 30-35 to a dollar. This is because
once the FII selling gets over the money flow may start reversing as the indian economy will still be in a growth trajectory, albeit at a slower level, compared to US and European economies which will be in recession at that time. If that happens then Aurobindo and such companies, even if they dont make profit out of FCCBS, will stop making losses. That is the fond hope with which one can hold the stock, I feel.
regards ...
In reply to:
where FCCBs money is deployed?
Posted by : sam_pd
There are two part of it.
First Part
if $/Rs conversion rate is fixed, No FCCBs bond holders will go for conversion on weaker Rs. In this case it is at 45.145 and currently Rs is at close to 5, means 10 % addition loss for bond holders, so even if stock prices recovers some how and Rs remains weak conversion won`t happen and that means problem for its investor and that adds to double whammy.
2nd Part,
if Rs weaken further, then there will be losses every quarter of FCCB restatement.
this is how. apart from $200 million FCCBs issued in 2006, it has also $55.5 million old fccbs from 2005. So total outstanding fccbs is at $255.5 million.
About forex loss every quarter.
Rs has weaken from 42.85 to 46.95 from June to Sept Quarter, so if we consider loss on $255.5 million fccbs that comes to 4.09*25.55= 104.5 crs in Rs.
In if Rs remains at this level of 50 for Dec 08, then this company is going to have already a forex loss of 3.05 *25.55=77.92 crs, means another loss making quarter.
On actual, there will be no cash outflows due to these fccbs restatement and this will get reversed if Rs became stronger.
Another interesting thing is that Accounting Standard (AS) 30 and 31 will be mandatory from 01 April 2011 and aurobindo Pharma $200 fccbs due date is May 2011, so if fccbs conversion doesn’t happen then hit will come to profit /loss balance sheet and it will be a huge loss making company with very high debt on balance sheet. For old $55.5 million FCCBs, if they don’t follow AS 30 and 31, then may be they will pay out the fccbs premium from share premium account and may avoid taking these in profit/loss balance sheet.
Only consolation is that company is so far showing growth in business but investors are not buying and thinking about growth. Market is now punishing very hard all the companies, which FCCBs are deep out of money.
This companies has never notified exchange about utilization of funds and let us hope that they have invested these FCCBs funds in some real R/D work and not been busy buying pnotes and investing in stock market otherwise investors are doomed and doomed for years.
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