Healthy outlook: Aurobindo Pharma posts Rs 5.95 billion net profit in Q3

Aurobindo Pharma's reported profit after tax at Rs 5.95 billion for the December quarter (Q3), up a mere three per cent year-on-year, may have disappointed the street as the stock fell 2.4 per cent to Rs 602 on Thursday, but a look at the core performance and future prospects provide comfort.

For one, Aurobindo had to re-measure its US deferred tax assets and liabilities based on the new tax law and also recognise a one-time charge of Rs 664 million in Q3. Thus, its net profit came below estimates of Rs 6.63 billion.

Overall performance, however was healthy led by growing US