Aurobindo Pharma Q1 Results: Profit Falls Missing Estimates As U.S. Revenue Contracts
Aurobindo Pharma's Q1 profit misses estimates as its U.S. formulations revenue contracts.
Aurobindo Pharma Ltd.’s first-quarter profit fell missing estimates as its U.S. revenue contracted and sales of Covid-related treatments declined in India.
The Hyderabad-based bulk and generic drugmaker's net profit fell 4% sequentially to Rs 769.97 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 825.3-crore profit estimate of analysts tracked by Bloomberg.
Revenue fell 5% sequentially to Rs 5,702 crore. Analysts expected Rs 6,158.8 crore.
Ebidta fell 5% to Rs 1,209.4 crore against the estimated Rs 1,313.8 crore.
Margin remained almost unchanged at 21.2%.
Other Highlights (QoQ)
Formulation business, which accounted for 85.8% of the total revenues for the quarter, declined 6.2% sequentially to Rs 4,889.8 crore.
U.S. formulation business contracted 6.3% to Rs 2,681.2 crore, contributing 47% of total revenue.
The company launched five products during the quarter, including two injectables in the U.S.
Revenue from Europe and growth markets (aided by Brazil and South Africa) rose 2% and 7.7%, respectively. They contributed to 27.8% and 5.8% to total revenue.
Anti-retroviral formulations contracted 39.7% and accounted for 5.1% of total revenues. This business was affected by higher stocking on advanced procurement last year, amid Covid-19 uncertainties.
Active pharmaceutical ingredients grew 2.2% sequentially, contributing 14.2% of the revenue.
“We remain focused on ensuring business continuity on the operations front and to resolve regulatory issues in some of our facilities,” N Govindarajan, managing director at Aurobindo, said in the earnings statement.
Aurobindo Acquires Animal Health Firm
Aurobindo said it acquired Hyderabad-based generic veterinary pharmaceutical products developer and contract research services provider Cronus Pharma Specialties India Pvt. for Rs 420 crore.
The deal will provide Aurobindo a foothold in the Rs 3.6 lakh crore ($48 billion) global animal health market.
The company also announced merger of two fully owned subsidiaries, Auronext Pharma Pvt. and Mviyes Pharma Ventures Pvt., to achieve greater economies of scale, reduce overheads, and improve cash management.
Shares of Aurobindo Pharma closed 3.6% lower on Aug. 12 ahead of the earnings compared with a 0.6% rise in S&P BSE Sensex. The stock slumped as much as 8.5% on Friday morning.