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Aurobindo Pharma shares fall 3% despite a 22% jump in Q1 profit

At operating level, its earnings before interest, tax, depreciation and amortisation (EBITDA) rose 9.7 percent YoY to Rs 1,257.4 crore, and margin expanded 10 bps to 21.2 percent in Q1FY21, compared to same period last year.

August 13, 2020 / 09:51 IST
     
     
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    Aurobindo Pharma share price was down over 3 percent in early trade on August 13, a day after the company came out with its June quarter results.

    The drugmaker on August 12 reported a 22.8 percent year-on-year (YoY) rise in consolidated profit at Rs 780.7 crore in the June quarter.

    Revenue from operations for the quarter under review at Rs 5,924.8 crore increased by 8.8 percent over the year-ago period, with US formulation business showing a 15.6 percent growth at Rs 3,107.1 crore YoY.

    "Amidst challenging times, we have started the financial year by reporting a healthy performance," said N Govindarajan, managing director of the company.

    Revenue from antiretroviral (ARV) segment grew by 33.6 percent YoY to Rs 425.5 crore. Active pharmaceutical ingredient (API) revenue increased 6.5 percent to Rs 780.2 crore in Q1 FY21.

    The stock price has jumped over 100 percent in the last nine months and was trading at Rs 914.45, down Rs 19.55, or 2.09 percent at 09:22 hours. It has touched an intraday high of Rs 934 and an intraday low of Rs 892.25.

    At the operating level, its earnings before interest, tax, depreciation and amortisation (EBITDA) rose 9.7 percent YoY to Rs 1,257.4 crore, and margin expanded 10 bps to 21.2 percent in Q 1FY21, compared to the same period last year.

    Earnings were above analysts' estimates. Profit was estimated at Rs 731 crore and EBITDA was expected at Rs 1,217 crore with margin at 21.1 percent for the quarter, as per the average of estimates of analysts polled by CNBC-TV18.

    The company in a filing to the exchanges said that it has received US FDA nod for low blood pressure drug Midodrine Hydrochloride. It also approved an interim dividend of Rs 1.25 per share for the FY21.

    Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities is of the view that unless it trades below Rs 840, positional traders can retain an optimistic stance and look for a target Rs 950-975. Fresh buying can be considered now and on dips if any between Rs 910-885 levels with a stop loss below Rs 840.

    Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​

    Sandip Das
    first published: Aug 13, 2020 09:51 am

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