Investing in reliability
I am pleased to report that 2016-17 was another satisfactory year for Aurobindo withsolid growth in sales in all major geographies. New benchmarks were recorded in gainingmarket presence in US Europe and emerging markets in a continuing story of exemplarygrowth.
The year witnessed an incremental sales of 8.1% over the previous year at Rs.150899million at the consolidated level. The Company's diversified product portfolio in oralsolids including controlled substances and injectables made all the difference in achallenging and competitive market. We are continuing to build a strong pipeline and areconfident that we shall ensure sustainable growth well into the future.
Earnings before interest depreciation and tax before forex and other income (EBITDA)for the year at Rs.34343 million reflected a 7.7% growth. We faced head winds butmaintained the EBITDA margin for the year at 22.8% the same as in the previous year.Profit after tax at Rs.22959 million was higher by 13.5% over 2015-16. Earnings per sharefor the year were healthy at Rs.39.3.
This extraordinary financial achievement is the result of the talent resiliency andresourcefulness of our 16000+ employees across the globe. Because of their dedication andcommitment demonstrated every working day our products are presently marketed in 150+countries and are growing in all geographies.
All the manufacturing facilities were streamlined and optimized to increase throughputadd to our reliability levels and maintain profitability. They improved on their processefficiencies to deliver exceptional performance while meeting aggressive goals in productlaunches and market presence. Our experienced professionals supported by continuedinvestment in state-of-the-art manufacturing equipment are an enormous competitivestrength.
There was unrelenting focus to raise the bar. We redefined our project timelines mademarked progress in supply chain performance and material planning augmented alternatesource of supplies fine tuned production scheduling asset utilization and productivityall of which have worked together to enhance our reliability quotient with our customers.We have further supplemented our manufacturing infrastructure to add to our marketpresence and value creation. Going ahead one more large manufacturing facility - Unit Xat Nayudupeta - and a biosimilars manufacturing unit are being commissioned in 2017-18.
Our organizational structure ensures sharp focus and accountability leveraging on ourinherent capabilities. We have been ramping up our operations to generate continuous andsustainable improvement to enhance the quality of our processes ensure that we complywith all the
So far what we have achieved is only the beginning of things to come. We expect robustgrowth to continue for the foreseeable future. Actually we are building a moat around us.standard operating procedures and pare down our costs. This now is the mindset of ourteam.
I am excited to share with you that we have forayed into biosimilars development tocontinue with our strategy of investing in complex portfolio. New initiatives intooncology dermatology inhalers nasal products specialty injection products peptidesvaccines etc are progressing to schedule.
I am equally excited that during the year Aurobindo acquired Generis FarmaceuticaS.A. a generic pharmaceutical firm that focuses on both the retail and hospital segments.Generis has a wide portfolio of products with major share in the therapeutic areas ofcardiovascular (CVS) central nervous system (CNS) anti-infectives and genito-urinarysystem ailments.
Generis is the most sold pharmaceutical brand in Portugal and is the 2nd largestgeneric group in Portugal and would establish Aurobindo as the leading generics group inthat country. We also acquired the rights title and interest in products Calcium andCalcium Vitamin D3 including the use of the Orocal trademark for the France market. Thisis in-line with our corporate plan to ramp up our presence in Europe to generate a strongrevenue stream from those developed markets.
So far what we have achieved is only the beginning of things to come. We expect robustgrowth to continue for the foreseeable future. Actually we are building a moat around us.Increasingly we will be seen working on newer technologies and more complex productrange. We have further strengthened our competitive position by enhancing our productdevelopment capabilities. I must assure all our stakeholders that we have the necessaryexpertise while some of the infrastructure is being made ready in time.
We work beyond business. As a responsible corporate we are committed to achievingeconomic success; our stakeholders expect it of us. Yet we believe that key to thebusiness success lies in finding a balance between the social environmental and economicresponsibilities that we face.
We have done considerable work to foster positive relationships in the communitieswhere our facilities exist as well as minimized consumption of resources especially waterand fossil fuel. We believe strong safety performance contributes to our competitivestrength and benefits our employees. These are of course a continuing effort; ongoing upgradation is hence a work-in-progress.
I appreciate the strong support of our shareholders and business partners and thereliable counsel of our Board including our newest Director Mr. Rangaswamy RathakrishnanIyer who joined the Board and Dr. Rajagopala Reddy who stepped down both in February2017. We welcome Mr. Rangaswamy and wish Dr. Reddy all the very best in his pursuits.
I am deeply thankful to all our stakeholders for their encouragement and support. Inparticular I am grateful to our inherent strength - all our employees. I am extremelyproud of them.
K. Nithyananda Reddy