Aurobindo Q4 net up 39% at Rs 563 cr

Company crosses $2 bn revenue mark in FY16

Hyderabad-based Aurobindo Pharma Limited has reported a 39.39 per cent jump in consolidated net profit at Rs 563 crore for the quarter ended March, 2016 on the back of higher formulations revenues. The net profit for the year ago period was Rs 403.80 crore.

On Tuesday the company scrip rose 5.2 percent to touch a peak of Rs 794 in the afternoon trading session on Bombay Stock Exhange.

Total income from operations grew 18.49 percent to Rs 3,746.75 crore for the quarter under review from Rs 3,162.07 crore in the corresponding quarter previous year. Rise in expenditure was way below the revenue growth at 14.86 percent pushing the operating profit (EBIDTA) for the quarter up to 23.5 per cent from 20.7 in the corresponding previous quarter.

The formulations business contributed 80 percent of the total revenues and witnessed 20 percent growth during the quarter and 17 percent during the year, US formulations business contributed 44 percent to the total revenues and witnessed a 24.3 per cent growth during the quarter under review.

"We continue our growth journey with higher number of ANDA approvals, new launches and better integration of acquired businesses. With growth coming from all business verticals, focus remains on new launches in the US and improved cost efficiencies in EU. In Addition, our work continues on new businesses and differentiated technology platforms which will drive our future growth,"Aurobindo managing director N Govindarajan said.

For the full year ended March, 2016 the company's net profit stood at Rs 1,982 crore, an increase of 25.78 percent over Rs 1,575.77 crore in the previous year. With a 14.65 growth in total income at Rs 13,896.08 crore as compared to Rs 12,120.52 crore in the previous year, the company has crossed $ 2 billion revenue mark for the first time in 2015-16.

According to Angel Broking's pharma sector analyst Sarabjit Kour Nangra, the fourth quarter results on the net profit front was below expectations while on operating front the margins at 23.5 percent was in line with expectations. Apart from the sales growth and OPM expansion, the higher other income during the quarter also aided the net profit growth, she said.