Aurobindo Pharma To Start Production At Chinese Facility From Q3, Says CFO
The Hyderabad-based pharmaceutical company plans to initiate a limited volume rollout between November and December, with plans to increase production during the January-March quarter.
Aurobindo Pharma Ltd. will begin production at its China facility in the next quarter, with full-scale output projected to start in the following fiscal year, according to Chief Financial Officer Santhanam Subramanian.
The Hyderabad-based pharmaceutical company plans to initiate a limited volume rollout between November and December, with plans to increase production during the fourth quarter of the financial-year ending March 2025.
"We are trying to do some filings for China as well as for the US. So, all of this will boost China's revenue potential in the coming years. This year, we will see only a small volume and value," Subramanian said in an analyst call.
The company is on track with respect to the large-scale commercialization of Pen-G (penicillin) and hopes to ramp up production significantly by October this year, he said.
The company's Rs 2,400 crore Pen-G plant in Andhra Pradesh, which was approved under the Production-Linked Incentive Scheme for Promotion of Domestic Manufacturing of Critical Key Starting Materials, Drug Intermediates, and Active Pharmaceutical Ingredients in the country, will have a production capacity of around 15,000 tonne annually.
On the US business, Subramanian said it expects the current pricing scenario in the US market to continue.
Europe and growth markets are expected to continue the growth momentum, he added.
Overall, the drug major is confident of achieving its internal Ebitda target margin of 21-22% for the current fiscal, Subramanian said.
Aurobindo Pharma reported a 61% increase year-on-year in its consolidated net profit at Rs 919 crore for the April-June quarter this fiscal. The drug maker reported a revenue from operations at Rs 7,567 crore in the June quarter.
(With Inputs From PTI.)
