Aurobindo Pharma posts Rs602 crore net profit in Q2
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Hyderabad: Aurobindo Pharma Ltd on Monday said fiscal second-quarter profit rose 33.2%, beating analysts’ estimates, on higher sales of generic drugs in the US.
Net profit rose to Rs602.6 crore in the quarter ended September compared to Rs452 crore in the year-ago period. Revenue rose 12% to Rs3,775.5 crore.
Bloomberg analyst polls had estimated Aurobindo Pharma to report a net profit of Rs595 crore on revenue of Rs3,839.80 crore.
Sales of formulations or generic drugs, which contribute about four-fifths of total revenue, grew 12.4% to Rs3,004 crore, compared with Rs2,673 crore in the year-ago period.
Sales of active pharmaceutical ingredients (API), the key raw materials that go into the production of drugs, increased 11.3% to Rs768.8 crore.
The US formulation business contributed 46% to the total revenue and grew 17.8% to Rs1,735 crore due to “volume increase and the new launches in both oral and injectable segments”, the company said.
The European Union formulations business contributed 21.6% of total revenue and grew 6.4% to Rs813.4 crore, led by an acquired business.
In January 2014, Aurobindo bought loss-making Western European commercial operations of Irish drug maker Actavis Plc for €30 million.
“We witnessed satisfactory quarter on a year on year basis with enhanced cost efficiencies,” said N. Govindarajan, managing director of the company. “The company continues to invest for long-term growth by creating niche, differentiated products using newer technologies.”
Aurobindo said it spent Rs148 crore or 3.9% of sales on research and development.
During the second quarter, the company filed nine abbreviated new drug applications (ANDA) with the US Food and Drug Administration (USFDA), including six in the oral category and three in the injectable category.
During the period, the company received 15 ANDA approvals from the USFDA. On a cumulative basis, the company received 284 approvals from the USFDA, including 41 tentative approvals.
As of 30 September, Aurobindo Pharma had net debt of Rs3,225.8 crore. The company was able to reduce the net debt by around Rs1,000 crore due to increased cash flows.
The results were announced after market hours.