Aurobindo Pharma spurts after strong Q1 earnings

Aurobindo Pharma gained 4.78% to Rs 581.55 at 10:13 IST on the BSE after consolidated net profit jumped 41.6% to Rs 645.18 crore on 28.1% increase in net sales to Rs 5356.84 crore in Q1 June 2019 over Q1 June 2018.

The result was announced after market hours yesterday, 7 August 2019.

Meanwhile, the S&P BSE Sensex was up by 101.3 points or 0.28% at 36,791.8.

On the BSE, 1.23 lakh shares were traded in the counter so far compared with average daily volumes of 80000 shares in the past two weeks. The stock had hit an intraday high of Rs 585.25 and an intraday low of Rs 571.9 so far during the day. The stock hit a 52-week high of Rs 838 on 30 April 2019 and a 52-week low of Rs 537 on 5 August 2019.

The company's earnings before interest tax depreciation and amortization (EBITDA) increased 47.1% to Rs 1146.4 crore in Q1 June 2019 compared with Rs 779.2 crore in Q1 June 2018. The EBITDA margin was at 21.1% in Q1 June 2019 as compared to 18.3% in Q1 June 2018.

The spending on research & development (R&D) was at Rs 243 crore (4.5% of revenue) in Q1 June 2019.

The consolidated finance cost increased 68.9% to Rs 49.9 crore in Q1 June 2019 as compared to Rs 29.5 crore in Q1 June 2018.

Revenue from US formulations registered a robust growth in Q1 June 2019. The revenue surged 42.3% to Rs 2688.4 crore in Q1 June 2019 from Rs 1889.6 crore in Q1 June 2018.

Revenue from Europe formulations inched up 16.1% to Rs 1391.6 crore in Q1 June 2019.

Commenting on the company's performance, N. Govindarajan, managing director of the company said, We have started the year with a healthy performance. Enhancing our quality management practices and adhering to the regulatory requirements continues to be our highest priority. During the quarter, we have commissioned Eugia's manufacturing facility and launched 5 Oncology & Hormonal products in the US market.

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, EU, Japan PMDA, WHO, Health Canada, South Africa MCC, Brazil ANVISA.

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