Hyderabad: Aurobindo Pharma Ltd on Tuesday said fiscal first-quarter profit rose 24% on better sales of generic drugs in US and Europe.
Net profit rose to Rs.585.5 crore in the quarter ended June compared to Rs.472.5 crore in the same period last year, while revenue grew 13% to Rs.3,726 crore.
While net profit was above analysts’ estimates, revenue came in below expectations. A Bloomberg poll of 15 analysts estimated net profit at Rs.581.9 crore, while 14 analysts estimated revenue at Rs.3,855.6 crore.
Sales of formulation or generic drugs, which contribute about four-fifths of total revenue, grew 16% to Rs.3,032 crore compared with Rs.2,615.7 crore in the year-ago period. Sales of active pharmaceutical ingredients (API), the key raw materials that go into manufacture of drugs, increased 1.6% to Rs.734.5 crore.
The US formulation business contributed 45% to the total revenues and witnessed 20.5% growth to Rs.1,704 crore in the first quarter due to “new launches in the oral and injectable segments,” the company said.
EU formulations contributed 22% to the total revenue and registered a growth of 12.1% to Rs.831 crore, led by an 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 added 8% to the total revenues of the company, with just 2.6% growth. The API business registered 1.6% growth at Rs.734.5 crore in Q1.
“The quarter started with a double digit growth year-on-year on the back of overall business performance,” said N. Govindarajan, managing director of the company.
“With focus on execution and capability enhancements, we continue to progress on speciality generics for sustained long-term growth,” he said.
Aurobindo said it has spent Rs.120 crore or 3.2% of sales on research and development. During the first quarter, the company filed five abbreviated new drug applications (ANDA) with the US Food and Drug Administration (USFDA) including three in the oral category and two in the injectable category.
During the period the company received 20 ANDA approvals from USFDA including 13 final approvals and seven tentative approvals. On a cumulative basis, the company received 269 approvals from USFDA including 41 tentative approvals.
Shares of Aurobindo declined 1.84% to close at Rs.736.30 on BSE, while the benchmark Sensex gained 0.02% to end at 27,990.21 points.