Aurobindo Pharma drops after announcing Q2 results

Aurobindo Pharma dropped 1.77% to Rs 775.20 at 10:00 IST on BSE after the company announced Q2 results after market hours yesterday, 9 November 2017.

Meanwhile, the S&P BSE Sensex was down 64.52 points or 0.19% at 33,186.41.

On the BSE, 2.18 lakh shares were traded on the counter so far as against the average daily volumes of 2.2 lakh shares in the past one quarter. The stock had hit a high of Rs 808 and a low of Rs 767.50 so far during the day. The stock had hit a 52-week high of Rs 808.95 on 7 November 2017 and a 52-week low of Rs 504 on 29 May 2017.

The stock had outperformed the market over the past one month till 9 November 2017, gaining 8.07% compared with the Sensex's 4.41% rise. The stock had also outperformed the market over the past one quarter, rising 15.35% as against the Sensex's 4.57% rise. The scrip had, however, underperformed the market over the past one year, advancing 3.9% as against the Sensex's 22.01% rise.

The large-cap company has equity capital of Rs 58.59 crore. Face value per share is Re 1.

Aurobindo Pharma's consolidated net profit rise 29% to Rs 781.15 crore on 17.3% rise in net sales to Rs 4354.18 crore in Q2 September 2017 over Q2 September 2016.

Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) margin rose to 25.2% in Q2 September 2017 from 24.6% in Q2 September 2016.

Commenting on the company's performance, N. Govindarajan, Managing Director of the company said that strong growth in US, European Union and growth markets have contributed to a healthy Performance in Q2. Despite challenging environment, US business posted a robust growth of 21% year on year driven by new product launches and increased volumes of existing products. The steady focus on developing a differentiated and speciality product basket will help to sustain the growth momentum for the future, he added.

Aurobindo Pharma's board of directors approved interim dividend of Rs 1.50 per share for the year ending 31 March 2018 (FY 2018).

Separately, the company's board of directors approved to transfer the land admeasuring 24,109 square yards at Raidurg (V), Serilingampalli, Ranga Reddy district to Raidurgam Developers, wholly owned subsidiary of the company for the purpose of development and construction of a commercial building on the same land.

The board also approved the proposal of primary infusion of funds by an investor namely, Aurobindo Realty & Infrastructure, of up to 60% in Raidurgam Developers, resulting in dilution of the Aurobindo Pharma's ownership in Raidurgam Developers to 40% and it consequently ceasing to be the company's subsidiary.

Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients.

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