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Aurobindo Pharma Q4 Results: Profit Falls 28% Missing Estimates

Aurobindo Pharma's fourth-quarter profit fell, missing estimates, on one-time charges.

<div class="paragraphs"><p>Colourful drug pills. (Photo:&nbsp;Wengang Zhai/Unsplash)</p></div>
Colourful drug pills. (Photo: Wengang Zhai/Unsplash)

Aurobindo Pharma Ltd.’s fourth-quarter profit fell, missing estimates, on one-time charges.

The Hyderabad-based bulk and generic drugmaker’s net profit declined 28% year-on-year to Rs 576 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 600-crore consensus estimate of analysts tracked by Bloomberg.

The company charged Rs 163 crore this quarter towards exceptional items, including impairment towards some assets.

Q4 Highlights (YoY)

  • Revenue fell 3% to Rs 5,809 crore against the expected Rs 5,901 crore.

  • Ebitda was down 24% at Rs 974 crore against the Rs 1,029-crore forecast.

  • Margin stood at 16.8% against 21.2%. That compares to the estimated 17.4%.

  • Active pharmaceutical ingredients business grew 15% to Rs 913 crore.

  • Revenue from formulation of finished drug fell 6% to Rs 4,896 crore.

  • U.S. formulation business contracted 5% to Rs 2,728 crore

  • The company launched four new products and one injectable in the U.S. this quarter.

  • Revenue from Europe fell 0.8%, while that from the growth markets (aided by Brazil and South Africa) rose 28%.

  • Anti-retroviral formulations revenue slumped 52%.

  • Research & Development stood at Rs 431 crore, 7.4 % of revenues.

"We continue to see volume growth in the complex generics segment and are also making significant progress in the complex development programs including biosimilars," K Nithyananda Reddy, vice-chairman and managing director at Aurobindo, said in the earnings statement. "Further we are also on-track for completing the PLI project as per the committed timelines.”

FY22 Highlights (YoY)

  • Revenue fell 5% to Rs 23,455 crore.

  • After-tax profits fell 50% to Rs 2,647 crore.

  • Operating profit fell 18%.

  • Operating margin stood at 18.7% against 21.5% a year ago.

  • Earnings per share stood at Rs 45.19 apiece against Rs 91.05 apiece in FY21.

  • Active pharmaceutical ingredients business grew 14% to Rs 3,516 crore.

  • Revenue from formulation of finished drug, accounting for 85% of the total revenue, fell 3% to Rs 19,939 crore.

  • U.S. formulation business contracted 1%. It accounts for 47.4% of total revenue.

  • Revenue from Europe and growth markets (aided by Brazil and South Africa) rose 7% and 5%, respectively. These contributed 27.6% and 6.4% to the total revenue.

  • Anti-retroviral formulations fell 55%, accounting for 3.6% of total revenue.

The company proposed a final dividend of Rs 4.5 per equity share.

Shares of Aurobindo Pharma closed 0.19% lower ahead of the earnings compared with a 1.90% rise in the benchmark S&P BSE Sensex.