Home / Companies / Aurobindo Pharma net profit down 8%

Hyderabad: Drug maker Aurobindo Pharma Ltd on Wednesday reported an 8% decline in net profit to 384.4 crore for the quarter ended December because of higher expenses and a drop in sales of active pharmaceutical ingredients.

The company reported a net profit of 417.5 crore in the year-ago period.

Revenue rose 48% to 3,166.2 crore from 2,140.6 crore in the year earlier.

Sales of formulation or generic drugs, which contribute about two-thirds of total revenue, grew 76.2% to 2,529.7 crore compared with 1,436.1 crore in the year-ago period. Sales of active pharmaceutical ingredients (API), the key raw materials that go into manufacture of drugs, declined 9.4% to 674.4 crore.

Total expenses of the company rose 66% to 2,621.3 crore.

Aurobindo Pharma in November acquired assets of nutritional supplement maker US-based Natrol Inc. and its affiliates in a bankruptcy auction for $132.5 million.

“We continue to grow our revenues and maintain profitability despite the absence of any exceptional upside," said N. Govindarajan, managing director of the company.

“We have been investing our efforts to further differentiate our product portfolio through initiation of developmental research in highly complex molecules and novel technology platforms, for a sustainable future," Govindarajan said.

The company said it didn’t get any approvals from the US Food and Drug Administration (USFDA) to launch any new generic drugs in the US market.

As of December, Aurobindo Pharma has 192 cumulative product approvals including 27 tentative by USFDA, the company said.

The results were announced after the close of market hours on Thursday.

Shares of Aurobindo Pharma dropped 1.26% to 1211.35 on the BSE, while the benchmark Sensex index declined 0.4% to 28,883.11 points.

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