Aurobindo Pharma recovers after Wednesday's slide

Aurobindo Pharma was up 4.22% to Rs 713 at 9:46 IST on BSE, with the stock recovering from Wednesday's losses after the company reported Q1 June 2017 results after market hours yesterday, 9 August 2017.

Meanwhile, the S&P BSE Sensex was down 197.82 points or 0.62% at 31,600.02.

On the BSE, 2.52 lakh shares were traded on the counter so far as against the average daily volumes of 3.46 lakh shares in the past one quarter. The stock had hit a high of Rs 722.05 and a low of Rs 701 so far during the day. The stock had hit a record high of Rs 895 on 6 October 2016 and a 52-week low of Rs 504 on 29 May 2017.

The stock had underperformed the market over the past one month till 9 August 2017, sliding 1.83% compared with the Sensex's 1.39% rise. The stock had, however, outperformed the market over the past one quarter, gaining 14.86% as against the Sensex's 6.23% rise. The scrip had underperformed the market over the past one year, sliding 10.48% as against the Sensex's 13.22% rise.

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

Shares of Aurobindo Pharma had declined 5.84% in a single trading session yesterday, 9 August 2017 to settle at Rs 684.15, ahead of announcing Q1 results.

Aurobindo Pharma's consolidated net profit fell 11.4% to Rs 518.50 crore on 2.3% decline in revenue from operations to Rs 3678.70 crore in Q1 June 2017 over Q1 June 2016.

EBITDA (earnings before interest, taxation, depreciation and amortization) before forex and other income fell 5.3% to Rs 841.60 crore in Q1 June 2017 over Q1 June 2016. EBITDA margin contracted to 22.9% in Q1 June 2017, from 23.6% in Q1 June 2016.

The company's Managing Director N. Govindarajan said that its key markets continue to maintain its momentum in both YoY and QoQ despite headwinds. It expects the momentum to sustain going forward driven by changing product mix towards complex products. It remains focused on strengthening its existing businesses and developing a differentiated and specialty driven product basket, Govindarajan said.

Separately, Aurobindo Pharma said after market hours yesterday, 9 August 2017 that it will increase its stake in Tergene Biotech to 80% from 60% by subscribing additional 56.50 lakh equity shares of Rs 10 each at par aggregating to Rs 5.65 crore. Tergene Biotech was a 60:40 joint venture between the company and promoters of Tergene.

Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients.

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