Aurobindo Pharma Q3 Results: Net Profit Jumps Fourfold On One-Offs; Shares Drop
Aurobindo Pharma’s U.S. business contributed nearly half of its consolidated revenue in the third quarter.
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.