Growth in key markets perks up Aurobindo stock, earnings to increase

On the flip side, Aurobindo may have seen some pressure on margins led by one-offs as product recall/provisions and some impact on higher raw-material prices

Shares of Aurobindo Pharma have been gaining on the bourses, and are up over 9 per cent since the June quarter results, announced a few days ago. This took the total gains to about 25 per cent since the June lows of Rs 526. 

Easing concerns over pricing pressure in the US, and Food and Drug Administration (FDA) inspections at Aurobindo’s manufacturing units are behind the upbeat sentiment. 

Continued traction in the US and boost from European markets continue to drive performance. US formulations sales growth of about 12 per cent and European formulations sales rise of 31 per cent, year on