Aurobindo hits record high, up 9% on stellar Dec earnings

Moneycontrol Bureau

Shares of Aurobindo Pharma jumped 9 percent, hitting a record high intraday on Friday as it posted highest ever profit in December quarter. The drug company’s Q3 FY14 net profit zoomed 355 percent to Rs 417 crore versus Rs 91.8 crore on a yearly basis, despite a higher tax expense of Rs 1,336 crore. The higher tax expenses could have come due to acquisition of Actavis’ west european business done in this quarter.

Its operating profit margin doubled to 30.1 percent compared to 16.5 percent. During the quarter, gross margin rose to 58 percent, expanding 840 basis (Y-o-Y), indicates improved product mix that has helped company cut costs.

Consolidated total revenues grew 38 percent to Rs 2140 crore versus Rs 1913.8 crore Y-o-Y, driven by 81 percent growth in US sales. India business grew 18 percent and exports were up 40 percent in December quarter.