Aurobindo Pharma likely to become debt-free by FY22: Key highlights of concall

Aurobindo Pharma's R&D expense for FY21 is expected to be at 5.5% of sales as the clinical trials for Biosimilars & differentiated products starts.

June 06, 2020 / 04:26 PM IST
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Aurobindo Pharma's consolidated net profit after JV share and minority interest was up by 45.2 percent to Rs 849.8 crore for the quarter ended March 31, 2020, against Rs 585.4 crore during the same quarter in FY19.

The consolidated revenue from operations grew by 16.4 percent to Rs 6,158.4 crore during the quarter under discussion against Rs 5292.2 crore in the last quarter of FY 19.

Here are the highlights of Aurobindo Pharma's Q4 FY20 earnings call compiled by Narnolia Financial Advisors:

The company's US sales have grown by 17% to USD 413 million. In the US business, the company has seen uptick in the oral solids in March 2020 due to COVID-19 related stocking up and also monetized the opportunities coming from other products due to supply issues faced by other companies.

Spectrum portfolio reported sales of USD 100 mn in FY20. Q1FY21 is expected to be down by 15-20%, though for the full year, decent growth is expected as one branded products will be added in the mid of the year.


For the US Market- the company expects to launch 52-60 products irrespective of facility status, of which the company has received approvals for products. And it expects to file 50-60 products in FY21.

In the constant currency, Europe grew by 26% YoY, Growth market grew by 27% YoY, ARV segment grew 27% YoY & API de-grew by 18% YoY.

For Europe, Apotex business is expected to breakeven in H2FY21. Currently, EBITDA margin for Europe stands at 9-10%, soon the company expects to reach 11-12% with Apotex breaking even.

In china- the company is currently filing from India. The Oral formulation facility is under construction in China and Exhibit batches are expected to be taken in H2FY21.

The gross margin improved across all geographies on account of product mix & rupee depreciation.

R&D for FY21 is expected to be at 5.5% of sales as the clinical trials for Biosimilars & differentiated products starts.

The company has guided to become debt-free by FY22 (earlier guided FY23).
Moneycontrol News
first published: Jun 6, 2020 04:26 pm

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