Aurobindo Pharma Q3 Results: Net Profit Jumps Fourfold On One-Offs; Shares Drop

Aurobindo Pharma Q3 Results : Aurobindo Pharma Ltd.’s profit surged in the third quarter, aided by one-time gains. Net profit of the drugmaker jumped fourfold over the year earlier to Rs 2,946.3 crore in the three months ended December, according to exchange filing.

Aurobindo Pharma Q3 Results

  • Overall exceptional gain of Rs 2,813.9 crore.
  • One-time gain of Rs 3,093.4 crore on disposal of business assets of a wholly-owned step-down subsidiary, Natrol in the U.S.
  • Gain of Rs 152.4 crore on account of re-measurement of equity interest in Eugia Pharma — a joint venture.
  • It also undertook an impairment charge of Rs 431.9 crore due to the continued impact of Covid-19 in certain markets towards product-related intangibles and goodwill.

The Hyderabad-based company reported an 8% year-on-year rise in consolidated revenue at Rs 6,364.9 crore. That compares with the Rs 6,429.4-crore consensus estimate of analysts tracked by Bloomberg.

Aurobindo’s revenue from the core U.S. market, which contributed 49.8% to the overall consolidated top line, grew 6.8% year-on-year to Rs 3,171.6 crore. On a constant currency basis, the growth was 2.9%.

  • Operating profit or earnings before interest, tax, depreciation and amortisation rose 9% over the prior year to Rs 1,307.7 crore, compared with the Rs 1,377.8-crore forecast.
  • Ebitda margin expanded 30 basis points to 20.6%.
  • The company also reported a forex gain of Rs 60 crore for the reported quarter against a forex loss of Rs 9 crore a year ago.

Q3 Results: Geography-Wise Trend (Year-On-Year)

  • Revenue from the European business rose 13.2% to Rs 1,671.2 crore and accounted for 26.3% of the consolidated revenue.
  • Formulations saw growth of 14.6% to Rs 396.2 crore and accounted for 6.2% of the consolidated revenue.
  • Anti-retroviral business revenue rose 41.5% to Rs 443.4 crore and accounted for 7% of the overall revenue.
  • Active pharmaceutical ingredient business revenue stood at Rs 682.5 crore and contributed 10.7% to the company’s consolidated top line.

Aurobindo, in its investor presentation, said it aims to double external API sales in the next four-five years. It is also strengthening its product pipeline with complex injectables such as long-acting and liposonal injectables.

Aurobindo Pharma Q3 Results: Net Profit Jumps Fourfold On One-Offs; Shares Drop via @goldsilverrepor
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