Aurobindo Pharma gains after strong Q2 outcome

Aurobindo Pharma rose 3.01% to Rs 1,032.05 at 11:01 IST on BSE after net profit rose 58.41% to Rs 372.18 crore on 51.57% increase in total income to Rs 2908.51 crore in Q2 September 2014 over Q2 September 2013.

The result was announced on Thursday, 6 November 2014, when the market was shut for a public holiday.

Meanwhile, the BSE Sensex was down 98.12 points, or 0.35%, to 27,817.76.

On BSE, so far 1.62 lakh shares were traded in the counter, compared with an average volume of 1.71 lakh shares in the past one quarter.

The stock hit a high of Rs 1,038.75 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 982.65 so far during the day. The stock hit a 52-week low of Rs 235.55 on 7 November 2013.

The stock had underperformed the market over the past one month till 5 November 2014, rising 3.75% compared with 5.07% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 36.97% as against Sensex's 7.75% rise.

The large-cap company has an equity capital of Rs 29.15 crore. Face value per share is Re 1.

On a consolidated basis, Aurobindo Pharma's net operating income rose 50.5% to Rs 2881.20 crore in Q2 September 2014 over Q2 September 2013.

Operating profit [earnings before interest, taxes, depreciation and amortization (EBITDA)] before forex declined to 22.1% in Q2 September 2014 compared with 22.9% in Q2 September 2013, on net operating income.

The EBITDA in Q2 September 2014 declined by 79 basis points due to increase in staff cost and other expenses to net operating income by 1.5% and 3.4% respectively, offset by decrease in materials consumptions to net operating income by 4.1% as a result of improved business mix.

During the current year, on 1 April 2014, the company's European subsidiary Agile Pharma B.V., Netherlands, acquired select Western European business of Actavis. The consolidated results for the quarter ended 30 September 2014 and quarter ended 30 June 2014 includes the financial position and results of operations of the above business of Actavis from 1 April 2014. The corresponding figures of the previous periods are not comparable.

Commenting on the company's performance, Mr. N. Govindarajan, Managing Director of the company said: "The quarterly performance has been satisfactory mainly on account of overall growth led by US Generics. Our business deliveries in Europe as well as other markets have been in line with our expectation. We are confident of sustaining this performance as we continue to focus on complex molecules and differentiated technology platforms for advanced markets."

Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company's manufacturing facilities are approved by several leading regulatory agencies like US FDA, UK MHRA, WHO, Health Canada, MCC South Africa, ANVISA Brazil. The company's robust product portfolio is spread over 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Gastroenterologicals, and Anti-Allergics. The company is marketing these products globally, in over 100 countries.

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