Aurobindo Q1 profit up 39.5% at Rs 636 crore on strong revenue growth

Revenue from operations rose 28.1% year-on-year to Rs 5,444.6 crore during the quarter under review

Aurobindo Pharma Limited reported a 39.5 per cent rise in consolidated net profit at Rs 635.8 crore for the quarter ended June 30, 2019, on the back of a strong revenue growth driven by the US formulations business. The company had reported a net profit of Rs 455.7 crore in the quarter ended June 30, 2018. 

Revenue from operations rose 28.1 per cent year-on-year to Rs 5,444.6 crore during the quarter under review from Rs 4,2503 crore in the corresponding quarter of the previous year. On a sequential basis there was a 2.9 per cent rise in revenue, while net profit growth stood at 8.6 per cent.

The company's US formulations revenue registered a 42.3 per cent rise at Rs 2,688.4 crore compared to Rs 1,889.6 crore in the corresponding quarter of the last financial year, accounting for 49.38 per cent of the total revenues for the period. Sequentially, the US formulations revenue registered a 8.4 per cent rise compared to Rs 2481.1 crore in Q4FY20.

"We have started the year with a healthy performance. Enhancing our quality management practices and adhering to the regulatory requirements continue to be our highest priority. During the quarter, we have commissioned Eugia's manufacturing facility and launched 5 Oncology and Hormonal products in the US market. Our differentiated product basket is progressing well and we are in the process of starting clinical trials for our first biosimilar in the second quarter of the current financial year," Aurobindo Pharma's managing director N Govindarajan said.

Total formulations revenues grew 34.6 per cent to Rs 4,712.0 crore in Q1FY20 as compared to Rs 3,500.8 crore in the year ago period.  Formulations accounts for 86. 6 per cent of total revenues for the quarter,

Europe,  the second largest market for the company, contributed Rs 1,391.6 crore to the formulations revenues in this quarter registering a 16.1 per cent growth. Formulations revenue from the growth markets stood at Rs 318.5 crore, an increase of 22.2 per cent over Rs 256.6 crore in corresponding previous quarter.

The revenue from anti retrovirals (ARVs), in the formulations segment, more than doubled to Rs 318.5 crore in Q1FY20. However, active pharmaceutical ingredients (API) revenues declined 20.1 per cent to Rs 732.2 crore in the same period, according to the company.