Aurobindo Pharma: Good growth in US, EU

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Aurobindo Pharma: Good growth in US, EU

Aurobindo Pharma has declared its third quarter numbers. The company registered good jump in its net profit to Rs 60.1 crore (Rs 601 million) as compared to Rs 26.2 crore (Rs 262 million) in the same period of last year.

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Aurobindo Pharma  has declared its third quarter numbers. The company registered a good jump in its net profit to Rs 60.1 crore (Rs 601 million) as compared to Rs 26.2 crore (Rs 262 million) in the same period of last year.

Lanka Srinivas, Director of the company, says that they have had good growth momemtum in USA & EU.

He informs that more than 70% of the growth has come in from their formulations business.

He also informs that they have been moving up the value chain, hence there has been good improvement on operating margins.

Excerpts from CNBC-TV18's interview with Lanka Srinivas:

A: The growth momentum has been continuous. Most of the shareholders are aware that since last year's fourth quarters, we actually started the turnaround and have in the continuous phase recorded excellent results for the third quarter too.

Our income has grown by more than 33%, while profits have seen 130% growth. And more importantly, the growth momentum, especially in America and Europe, has been quite good.

In the formulations business, which is the main foray, we have done extremely well and have achieved a growth rate of more than 70%. And the formulations in Europe, US and most of the markets have been tremendous.

Last quarter, we have done about Rs 157 crore worth of formulations. All the components have been growing quite nicely at this point of time.

A: Basically, as our value chain moves up - we are going into more formulations business from API business - the EBITDA margins too should continuously improve. So that is the reason this improvement and jump from 16-19%. This type of concept is more than sustainable and I think it should grow further too.

A: There is no specific target at this point of time, but we believe that in two to two-and-a-half years, we should become a USD 1 billion company and too with a decent EBITDA level.