Aurobindo Pharma Q1 results: Net profit declines 22.5% to Rs 540 crore

Aurobindo pharma Q1 results

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Pharmaceutical giant Aurobindo Pharma on August 12 reported a 22.5 percent decline in consolidated net profit at Rs 540.40 crore in the April-June quarter. The pharma company  had reported a net profit of Rs 697.60 crore in the year-ago period.

Revenue from operations came in at Rs 6,850.50 crore, up 10  percent from Rs 6,236 crore in the same quarter of the previous fiscal, the company said.

The growth in topline was aided by double-digit growth in across US and Europe formulations and Active Pharmaceutical Ingredients (APIs) segments.

Regardless, the bottomline missed CNBC-TV18's estimate of Rs 697.6 crore while the topline managed to surpass the Street's expectation of Rs 6,692 crore.

Besides, the company's operational performance also improved through the quarter as Earnings before interest, taxes, depreciation and amortization (EBITDA) rose nearly 23 percent to Rs 1,151.4 crore from Rs 936.5  crore clocked in the base quarter.

EBITDA margin or operating profit margin also expanded to 16.8 percent in April-June, up from 15 percent seen in the same quarter of the preceding fiscal. A poll of brokerages by CNBC-TV18 had pegged EBITDA margin for Aurobindo Pharma at 15.6 percent for the quarter under review.

Meanwhile, research and development (R&D) spend was at Rs 387.6 crore or 5.7 percent of overall revenues. The R&D spend was lower than the 6.3 percent seen in the previous quarter.

Revenue mix

The US formulations segment grew 11.2 percent on year backed by launches of 15 products during the quarter, including five injectables and accounted for 48.2 percent of consolidated revenues.

The drugmaker has also filed 12 ANDAs (Abbreviated New Drug Application) including one injectable product with US Food and Drug Administration, during the quarter gone by. Aurobindo Pharma also received final approvals for 19 ANDAs during the same quarter.

Revenue from European formulations increased by 18.6 percent on year and made up 26.8 percent of the total mix. On the other hand, growth markets,  which made up 7.1 percent of the revenue mix, grew 12.9 percent on year.

Lastly, the API segment increased by 14 percent year-on-year and accounted for a little of 15 percent of the overall revenues in Q1.

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