Aurobindo Pharma gains on strong Q1 results

The stock rallied 6% to Rs 778 after the company reported 24% YoY jump in consolidated net profit at Rs 585 crore in Q1FY17.

Aurobindo Pharma has rallied 6% to Rs 778 on the BSE in early morning trade after the company reported 24% year on year  (YoY)jump in consolidated net profit at Rs 585 crore for the quarter ended June 30, 2016 (Q1FY17),  on the back of higher sales income. The drug maker had registered a profit of Rs 471 crore in the same quarter year ago.

Net operational income of the company grew 12.9% at Rs 3,726 crore on YoY basis. The formulation business registered growth 15.9% at Rs 3,032 crore over the previous year quarter.

“The US formulations business contributed 45% to the gross sales and witnessed 20.5% growth YoY in Q1FY16-17. This is due to the new launches in the oral and injectable segment,” Aurobindo Pharma said in a release.

The ebitda (earnings before interest, taxes, depreciation and amortisation) margin improved 190 basis points at 23.9% in Q1FY17, up from 22% in the same quarter last year.

The company said during the period it received 20 ANDA approvals from USFDA including 13 final approvals and 7 tentative approvals.

At 10:01 am, the stock was up 5% at Rs 772 on the BSE, as compared to 0.22% rise in the S&P BSE Sensex. A combined 3.07 million shares changed hands on the counter on the BSE and NSE.