Aurobindo Pharma Q1 profit dips 11% at Rs 518 cr on low US sales, GST

Aurobindo maintained growth momentum in Europe by registering a 10.4% rise in formulations

Hyderabad-based Aurobindo Pharma Limited has reported an 11.4 per cent decline in consolidated net profit at Rs 518.5 crore for the quarter ended June 2017, in the absence of growth from formulations business during the period.

The revenues from operations that include both the formulations and active pharmaceutical ingredients (API) segments has decreased 2.3 per cent to Rs 3,678.7 crore for the quarter under review as compared to Rs 3,766.6 crore in the corresponding quarter previous year.

For the first time in recent quarters, the company's formulations business in the US slowed down during the quarter. Despite the launch of 15 products, including three injectables, during the quarter, the US revenues from this segment declined by 50 basis points at Rs 1,694.9 crore as compared to Rs 1,703.9 crore in the year ago period.

However, on the constant currency basis, the US revenues registered a 3.2 per cent growth during the period, according to the company.

On the other hand, Aurobindo maintained its growth momentum in Europe by registering a 10.4 per cent rise in formulations revenue at Rs 917.6 crore as compared with Rs 831.2 crore in the year ago period.

Total revenues from formulations business, which accounts for 83 per cent of the total revenues, saw a 0.6 per cent increase while API revenues declined by 14.9 per cent during the quarter ended June, 2017.

"Our key markets continue to maintain its momentum in both year-on-year and quarter-on-quarter despite headwinds. We believe the momentum to sustain going forward driven by changing product mix towards complex products. We remain focused on strengthening our existing businesses and developing a differentiated and speciality driven product basket," Aurobindo managing director N Govindarajan said.