Aurobindo Pharma gains 5% post December quarter results

Shares of Aurobindo Pharma gained 5 per cent to Rs 538 on the BSE on Friday after the company’s operational revenues witnessed a strong growth of 11.9 per cent year-on-year (YoY) at Rs 5,895 crore in December quarter (Q3FY20). US revenue for Q3FY20 witnessed a growth of 22 per cent YoY to Rs 2,969 crore, accounting for 50.4 per cent of consolidated revenue.

The stock of the drug company was trading higher for the fifth straight day, up 14 per cent, against a 4 per cent rise in the S&P BSE Sensex during the period.

The company’s consolidated earnings before interest, tax, depreciation, and amortisation (Ebitda) margin remained stable at 20.5 per cent in Q3FY20. Ebitda (before forex and other income) grew 11.2 per cent YoY at Rs 1,208 crore. Profit after tax (PAT); however, it declined 1 per cent YoY to Rs 705 crore, due to higher depreciation.

The company said it has received final approval for four abbreviated new drug application (ANDAs) and tentative approval for 1 ANDA from US Food and Drug Administration (USFDA). The management is committed to resolve all pending regulatory issues and continuously improve quality, it added.

Meanwhile, the board has approved second interim dividend at 175 per cent i.e., Rs 1.75 per equity share of Re 1 for the financial year FY19-20.