Aurobindo Pharma Q3 Results: Net Profit Jumps Fourfold On One-Offs; Shares Drop
Tablets move along the production line before packaging at a drug manufacturing facility in Russia. (Photographer Andrey Rudakov/Bloomberg)

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

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’s One-Off's In Q3:

  • 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.

Shares of Aurobindo Pharma fell as much as 3.3% to Rs 935.7 apiece in early trading, compared with the NSE Nifty 50 index's 0.2% drop.

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