Aurobindo Pharma Ltd on Monday said fiscal fourth-quarter profit rose 39%, beating analyst estimates, on better sales of generic drugs in the US and Europe.
Net profit rose to Rs.562.9 crore from Rs.403.8 crore in the year earlier, while revenue grew 18.5% to Rs.3746.75 crore.
A Bloomberg poll of 12 analysts had estimated that the Hyderabad-based drugmaker would post a net profit of Rs.561 crore on net sales of Rs.3,712 crore.
Sales of formulation or generic drugs, which contribute about four-fifths of total revenue, grew 20% to Rs.3,011 crore compared with Rs.2517 crore in the year-ago period. Sales of active pharmaceutical ingredients (API), the key raw materials that go into manufacture of drugs, increased 14.5% to Rs.774.6 crore.
US Formulations business contributed 44% to the total revenues and witnessed 24.3% growth to Rs.1666.3 crore in the fourth quarter due to the “new launches in the oral and injectable segment,” the company said.
EU Formulations contributed 22% to the total revenue and registered growth of 9.3% to Rs.840.7 crore, led by the acquired business that has seen profitability during the year on the back of increased focus, product pruning and cost efficiencies.
In January 2014, Aurobindo bought loss-making Western European commercial operations of Irish drug maker Actavis Plc for €30 million.
The antiretroviral portfolio used in treatment of AIDS, where Aurobindo participates in tenders floated by various countries and multilateral agencies added 9% to the total revenues of the company with 23% growth.
“A part of US growth could be due to contribution of Natoral,” said Nimish Mehta, pharma analyst at Equirus Securities Pvt. Ltd.
Aurobindo bought US-based nutritional supplement maker Natrol Inc. for $132.5 million in a bankruptcy auction in December 2014.