Aurobindo Pharma Q2 Result: Profit Rises 9%, Missing Estimates

Aurobindo Pharma Ltd.'s second-quarter profit increased, missing analysts' estimates.

The Hyderabad-based bulk and generic drug maker's net profit increased 8% year-on-year to Rs 817 crore in the quarter ended Sept 30, 2024, according to an exchange filing. That compares with the Rs 972 crore consensus estimate of analysts tracked by Bloomberg.

Aurobindo Pharma Q2 FY25 Result Highlights (Year-on-Year)

• Revenue up 8% at Rs 7,796 crore vs. Rs 7,219 crore (Bloomberg Estimate: Rs 7756 crore)

• Ebitda up 12% at Rs 1,566 crore vs. Rs 1,402 crore (Bloomberg Estimate: Rs 1677 crore)

• Ebitda margin at 20.1% vs. 19% (Bloomberg Estimate: 21.60%)

• Net profit up 8.6% at Rs 817 crore vs. Rs 752 crore (Bloomberg Estimate Rs 972 crore)

US Formulations

• US revenue increased by 4.3% YoY to Rs 3,530 Cr and accounted for 45.3% of consolidated revenue.

• Company filed 10 ANDAs with USFDA during the quarter.

• The company has launched 14 products during the quarter.

Europe Formulations

Europe revenue increased by 19.0% YoY to Rs 2,105 crore and accounted for 27.0% of consolidated revenue.

Growth Markets Formulations

• Growth Markets formulations revenue increased by 44.0% YoY to Rs 812 crore and accounted for 10.4% of consolidated revenue.

• Domestic formulation sales for the quarter stood at Rs 71 crore.

Antiretroviral (ARV) Formulations

ARV business revenue decreased by 22.8% YoY to Rs 193 crore and accounted for 2.5% of consolidated revenue

Active Pharmaceutical Ingredients (API)

API business revenue remained flat YoY at Rs 1,156 Cr and contributed 14.8% of consolidated revenue.

"We are pleased with the continued growth in revenues across our key business areas this quarter, reflecting the resilience of our diversified portfolio. While profitability saw a slight dip, primarily due to the transient nature of certain business activities, our underlying performance remains strong, said Mr. K. Nithyananda Reddy, Vice Chairman and Managing Director of the Company.

With a solid foundation and ongoing operational improvements, we are confident of maintaining our growth trajectory and achieving our strategic objectives for the year." he added

Shares of Aurobindo Pharma closed 1.9% lower on Friday a day before the results were announced, compared to a 0.21% fall in the benchmark Nifty.