Aurobindo Pharma hits 52-week high on better-than-expected Q2 earnings

Aurobindo Pharma surged 9.71% to Rs 261.50 at 10:44 IST on BSE after consolidated net profit rose 5.7% to Rs 235 crore on 27.6% growth in operating revenue to Rs 1913.90 crore in Q2 September 2013 over Q2 September 2012.

The Q2 result was announced after market hours on Thursday, 7 November 2013.

Meanwhile, the S&P BSE Sensex was down 74.44 points or 0.36% at 20,748.33.

The stock spurted on heavy volumes. On BSE, 25.18 lakh shares were traded in the counter as against average daily volume of 2.73 lakh shares in the past one quarter.

The stock hit a high of Rs 263.45 so far during the day, which is also its 52-week high for the counter. The stock hit a low of Rs 244.50 so far during the day. The stock had hit a 52-week low of Rs 127.15 on 28 March 2013.

The stock had outperformed the market over the past one month till 7 November 2013, surging 14.07% compared with the Sensex's 4.66% rise. The scrip had also outperformed the market in past one quarter, jumping 51.05% as against Sensex's 11.56% rise.

The mid-cap company has an equity capital of Rs 29.12 crore. Face value per share is Re 1.

Aurobindo Pharma's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) before forex surged 75.1% to Rs 438.40 crore in Q2 September 2013 over Q2 September 2012. EBITDA margin before forex galloped by 620 basis points (bps) to 22.9% from 16.7% a year ago due to improved business mix resulting in decrease in materials consumption, staff cost and other expenses to net operating income by 2.4%, 0.9% and 2.9% respectively.

Commenting on the company's Q2 performance, Mr. N. Govindarajan, Managing Director, Aurobindo Pharma said, "The integrated business in generic Formulations is auguring well to drive the operating performance of the company. We are also investing in specific new, differentiated products offerings such as Oncology, Hormones, Peptides and OTC business which we believe will complement our business in the coming years".

Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients. The company's manufacturing facilities are approved by several leading regulatory agencies like USFDA, 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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