Aurobindo Pharma Q2 net profit up 33% at Rs 605 crore

Hyderabad-based Aurobindo Pharma Limited has reported a 33.5% jump in consolidated net profit at Rs 605.64 crore for the quarter ended September 2016 on the back of higher growth in formulations business in the US market. The net profit for the same quarter of the previous year was Rs 453.55 crore.

The company's income from operations grew 12.19% to Rs 3775.45 crore for the quarter under review from Rs 3365.11 crore in the year ago period while the EBITDA (earnings before interest, taxes, depreciation and ammortisation) margin was improved by 150 basis points during the period.

The company also reported a foreign exchange gain of Rs 20,19 crore for the period as compared to a loss of Rs 43.92 crore on this front in the year ago period.

US formulations, which contributed 46% to Aurobindo's gross sales has witnessed 17.8% growth at Rs 1,735.1 crore due to increase in volume and the new launches in both oral and injectable segment, while the overall formulations business grew by 12.4%.

In Europe, the company's second largest contributor to the formulations business, gross sales of formulations has increased by 6.4% at Rs 813.4 crore as compared with Rs 764.3 crore. The formulations sales in the emerging markets, though relatively smaller compared to the above geographies, has registered a 13.3% increase to Rs 176.8 crore in the quarter ended September, 2016 from Rs 176.3 crore in the year ago period.

However, the Anti-Retro Virals business remained flat at Rs 278.5 crore as compared with Rs 280.2 crore in the corresponding previous quarter. Active Pharmaceutical Ingredients grew by 11.3% at Rs 768.8 crore.

On a sequential basis the growth in revenue and profit was marginal as compared to that of the first quarter ended June, 2016.

Commenting on the company's performance, Aurobindo Managing director N Govindarajan said, "We witnessed satisfactory quarter on a year-on-year basis with enhanced cost efficiencies. The company continue to invest for long term growth by creating niche, differentiated products using newer technologies."