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Aurobindo Pharma surges 3% as investors cheer strong Q3 earnings

Aurobindo Pharma's Q3 net profit soared 91 percent on year and revenue jumped 15 percent. Topline growth was aided by strong performance across all segments, including US and Europe formulations business, specialty and injectables, anti retro0viral and active pharmaceutical ingredient (API) business.

February 12, 2024 / 12:22 IST
During the quarter, the company also filed 7 ANDAs (Abbreviated New Drug Applications) with the US Food and Drug Administration.
     
     
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    Aurobindo Pharma shares surged more than 3 percent in the opening trade on February 12 after the company posted a strong performance in Q3 on all the three key parameters of profit, revenue and profitability.

    The pharma company's net profit soared nearly 91 percent on year to  Rs 936.2 crore for the December quarter.

    Revenue came in at Rs 7,351.7 crore, up 14.7 percent from the year-ago quarter. Revenue jumped around 15 percent to Rs 7,351.7 crore, aided by growth across all segments, including US and Europe formulations business, specialty and injectables, anti retro0viral and active pharmaceutical ingredient (API) business.

    The company's operational performance also improved, as the EBITDA margin expanded to 21.8 percent from 14.9 percent in last year.

    The margin was also ahead of brokerage firm Macquarie's estimate of 21.4 percent. The firm said Aurobindo Pharma's Q3 earnings was operationally in-line with its estimates, with EBITDA and PAT topping its expectations. Macquarie has an "outperform" call on the stock with a price target of Rs 1,300.

    At 9.31 am, Aurobindo Pharma was trading at Rs 1,025.25 on the NSE.

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    US formulations revenue grew by 28.9 percent year-over-year to $45.1 crore, while Europe formulation sales saw a 1.6 percent increase to 193 million euros.

    In the US, specialty and injectables revenue came around $11.2 crore in Q3, constituting 25 percent of the total US revenue. Globally, specialty and injectables revenue, on a proforma basis, amounted to about $15 crore.

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

    Moneycontrol News
    first published: Feb 12, 2024 10:18 am

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