Aurobindo Pharma drops on dismal quarterly results

Aurobindo Pharma posted an 8% decline in net profit on higher expenses and a drop in sales of active pharma ingredients

Shares of Aurobindo Pharma are trading lower by 4% to Rs 1,163 on the BSE after posting an 8% decline in net profit to Rs.384.4 crore for the quarter ended December on the back of higher expenses and a drop in sales of active pharmaceutical ingredients. Total expenses of the company rose 66% to Rs.2,621.3 crore.

Meanwhile, the revenue rose 48% to Rs.3,166.2 crore from Rs.2,140.6 crore in the year earlier and sales of formulation or generic drugs, which contribute about two-thirds of total revenue, grew 76.2% to Rs.2,529.7 crore compared with Rs.1,436.1 crore in the year-ago period.

We continue to grow our revenues and maintain profitability despite the absence of any exceptional upside, said N. Govindarajan, managing director of the company. We have been investing our efforts to further differentiate our product portfolio through initiation of developmental research in highly complex molecules and novel technology platforms, for a sustainable future, he added.

The company said it didn’t get any approvals from the US Food and Drug Administration (USFDA) to launch any new generic drugs in the US market.

The stock opened at Rs 1,188, touched a low of 1,153 on the BSE. A total of 59,658 shares changed hands on the BSE so far.