Aurobindo Pharma’s Third Quarter Profit Rises 6.3% But Misses Estimates
The drugmaker’s revenue growth was led by its U.S. operations.
Telangana-based drugmaker Aurobindo Pharma Ltd. reported a 6.3 percent year-on-year growth in profit for the third quarter, but missed street estimates.
The pharmaceutical company’s profit after tax increased to Rs 578.6 crore in the October-December quarter from Rs 544.3 crore in the corresponding period last year. Consolidated operating income rose 9.1 percent to Rs 783.7 crore in the third quarter.
Revenue grew 11.7 percent to Rs 3,844.5 crore from Rs 3,442.2 crore in the same quarter last year, the company said in a stock exchange filing. The Bloomberg consensus estimate of the net profit stood at Rs 611 crore and while the revenue estimate was Rs 3,925 crore.
Revenue growth was led by its U.S. operations that grew by around 45 percent on the back of new product launches in both oral and injectable segments and volume increase, a separate media release from the company said.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 9.4 percent to Rs 894.8 crore compared to Rs 817.7 crore year-on-year. The EBITDA margin, however, contracted 40 basis points to 22.9 percent.
The company’s formulation business registered an 11.4 percent growth in the quarter contributing Rs 3,130 crore to the revenue, the company said in a separate media statement. The active pharmaceutical ingredients (API) segment, too, grew around the same pace at 11.6 percent year-on-year, adding Rs 776 crore.
In the third quarter of FY17, we have recorded good overall growth on yoy basis. Despite pricing pressure in select products, we have registered a growth of 11.4 percent year-on-year due to diversified product basket and markets. We remain focused on developing a differentiated and specialty product basket which will drive our future growth.N Govindarajan, Managing Director, Aurobindo Pharma
During the period, the company received 19 Abbreviated New Drug Application (ANDA) approvals and three tentative approvals from the U.S. Food & Drug Administration.
