Aurobindo Pharma Ends At One-Month High On Best Revenue, Ebitda In Two Years

Shares of Aurobindo Pharma Ltd. rose to the highest in a month after the Hyderabad-based drugmaker reported its best quarterly revenue and operating profit in at least two years.

The company’s revenue rose 15.8% year-on-year to Rs 6,483.4 crore in the quarter ended September, the highest in at least eight quarters, according to an exchange filing. That compares with the Rs 6,218-crore consensus estimate of analysts tracked by Bloomberg.

Its net profit rose 26% over the year earlier to Rs 806.2 crore, against Rs 778 crore forecast.

The company’s earnings before interest, tax, depreciation and amortisation, too, increased 25.7% year-on-year to Rs 1,432.7 crore. Analysts had pegged the operating profit at Rs 1,314 crore. Operating margin expanded 170 basis points to 22.1%.

Segmental Performance (year-on-year):

• U.S. business grew 12.5% to Rs 3,189.8 crore. Revenue growth on a constant currency basis was 6.6% to $430 million. The U.S. business now accounts for 49.2% of the company’s consolidated revenue, according to its investor presentation.
• Revenue from the European business rose 8.1% to Rs 1,514.8 crore, and accounted for 23.4% of the total revenue.
• Revenue from growth market formulations rose 40% to Rs 446.5 crore, accounting for 6.9% of the total revenue.
• Anti-retrovirals business more than doubled to Rs 237.9 crore and contributed to 7.8% of the total revenue.
• API business saw growth of 3% to Rs 829 crore and contributed 12.8% of the overall revenue.

“Aurobindo Pharma has the most enduring generics ecosystems among peers to withstand volatility in the U.S. and other generics spaces,” ICICI Direct's Siddhanth Khandekar wrote in a post earnings note. “FY21 looks much more promising with respite for Unit IV, decent H1 performance and a stable outlook,” he wrote.

Of the 33 analysts tracking Aurobindo Pharma, 28 have a ‘buy’ rating, four suggest a ‘hold’ and one recommends a ‘sell’. The average of Bloomberg consensus 12-month target price implies an upside of 18.1%.

Shares of Aurobindo Pharma ended 3.5% higher at Rs 838.95 - the highest level in over a month. At the highest point of the day, the stock gained as much as 6.6% to trade at a three-month high.