Aurobindo Pharma Q3 Net Up 19.7 Percent at Rs 712 Crore

Pharma major Aurobindo Pharma Ltd said it has posted a 19.7 percent rise in consolidated net profit for the third quarter of FY19 ended December 31, 2018, at Rs 712 crore, up from Rs 595 crore in the corresponding quarter of FY18. This was on a 21.5 percent jump in revenue from operations for the third quarter of FY19 at Rs 5270 crore as against Rs 4336 crore in Q2FY18. While formulation sales accounted for nearly 82.5 percent of revenues, rising nearly 22 percent to Rs 4348 crore during Q3FY19 from Rs 3570 crore in Q3FY18, APIs contributed 17.5 percent to total revenues clocking 20.4 percent growth to reach Rs 922 crore during the third quarter of the current fiscal as compared to Rs 766 crore in the third quarter of last fiscal. Giving a breakup geography-wise, Aurobindo said international markets accounted for 90 percent of revenues and domestic markets just 10 percent, with US accounting for over 46 percent of total revenues, Europe for 24.5 percent, growth markets 6.5 percent and ARV (anti-retroviral formulations) at 5.3 percent.

US formulation sales grew 27 percent to Rs 2433 crore in Q3FY19 as against Rs 1910 crore in Q3FY18, European formulation sales went up over 10 percent to Rs 1293 crore as against Rs 1172 crore in Q3FY18 and growth markets posted 36 percent growth to Rs 341 crore during the quarter as compared to Rs 250 crore in the third quarter of FY18. Sales of ARVs (anti-retrovirals) rose 18 percent to Rs 281 crore in Q3FY19 from Rs 239 crore in Q3FY18. Commenting on the results, N Govindarajan, managing director, Aurobindo Pharma said: “We have delivered a robust revenue growth of 22 percent driven by strong growth across all business segments and markets. Gross profit could have been better but for certain one-time expenses. Our execution strength, pipeline evolution and recent acquisitions will drive future growth. The company said it filed 10 ANDAs with the US drug regulator USFDA during the quarter, including 4 for injectable products, and received final approval for 14 ANDAs and tentative approval for 1 ANDA. According to Aurobindo, its R&D spend for the quarter stood at Rs 255 crore, amounting to about 4.8 percent of revenues.

Aurobindo also said its board of directors approved a second interim dividend of Rs 1.25 per share of Rs 1 for FY2018-19, which works out to 125 percent. Aurobindo Pharma Ltd on Thursday said it has entered into a share subscription agreement to invest Rs 15 crore in Hyderabad-based pharma player Synergy Remedies Pvt Ltd, which has manufacturing facilities in Tirupati, to take its stake in the company to 19.9 percent. Aurobindo will be acquiring shares of the API and intermediates maker of Rs 10 each at a premium of Rs 4.30 per share to ramp up its stake in the company in a bid to ensure assured supplies of some APIs and intermediates, Aurobindo informed the bourses. Synergy, which was set up in 2011 and kicked off commercial production in 2016-17, has 10 licensed API products and clocked revenues of Rs 15.5 crore in 2017-18 and Rs 66.35 lakh in 2016-17, it said. – TOI