Aurobindo Pharma sees decline in Q3 net profit; shares jump 7%

On a consolidated basis, the drug maker's net profit declined 2.3% to Rs 715.16 crore in Q3 December 2019 (Q3 FY20) as against Rs 731.67 crore reported in Q3 December 2018 (Q3 FY19).

Net sales rose 12.1% year-on-year (Y-o-Y) to Rs 5,799.44 crore in Q3 FY20. The Q3 figures were declared after trading hours yesterday, 6 February 2020.

Profit before tax gained 2.3% to Rs 938.17 crore Y-o-Y. Current tax expenses rose 15.6% to Rs 217.57 crore during the period under review.

EBITDA grew 11.2% to Rs 1,208 crore in Q3 FY20 from Rs 1,086.40 crore in Q3 FY19. The EBITDA margin stood at 20.5% in Q3 FY20 as against 20.6% in Q3 FY19.

Research & Development (R&D) spend stood at Rs 253.20 crore, or 4.3% of revenues. The revenues from formulations for the quarter posted a growth of 17.4% Y-o-Y to Rs 5,104.90 crore, which accounts for 86.6% of total revenues.

US formulations revenue were at Rs 2,969.40 crore, registering a healthy growth of 22.0% YoY. Europe formulations revenue stood at Rs 1,476.3 crore, an increase of 14.2% against Q3 FY19.

Commenting on the company's Q3 performance, N. Govindarajan, the managing director of Aurobindo Pharma, has said that, We continue to perform well across all our key geographies. We remain focused on strengthening our existing businesses and developing a differentiated and specialty driven product portfolio. We are committed to resolve all pending regulatory issues and continuously improve quality.

Aurobindo Pharma is engaged in producing oral and injectable generic formulations and active pharmaceutical ingredients (APIs). Its product portfolio is spread over seven therapeutic/product areas, including antibiotics, anti-retrovirals, cardiovascular, central nervous system, gastroenterologicals, anti-allergies and anti-diabetics.

Shares of Aurobindo Pharma rallied 7.09% to Rs 547. The scrip traded in the range of Rs 553.20 to Rs 514.35 so far.

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