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Aurobindo Pharma Ltd.

BSE: 524804 Sector: Health care
NSE: AUROPHARMA ISIN Code: INE406A01037
BSE 00:00 | 15 Apr 914.65 4.90
(0.54%)
OPEN

907.95

HIGH

931.50

LOW

900.45

NSE 00:00 | 15 Apr 915.25 6.00
(0.66%)
OPEN

917.00

HIGH

932.00

LOW

900.00

OPEN 907.95
PREVIOUS CLOSE 909.75
VOLUME 208316
52-Week high
52-Week low
P/E 17.97
Mkt Cap.(Rs cr) 53,589
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 907.95
CLOSE 909.75
VOLUME 208316
52-Week high
52-Week low
P/E 17.97
Mkt Cap.(Rs cr) 53,589
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Aurobindo Pharma Ltd. (AUROPHARMA) - Chairman Speech

Company chairman speech

Committed to global patient care

We are committed to consolidating our capabilities with focus on scalegeographic outreach and portfolio maximisation while upholding our organisational valuesand delivering the highest standards of quality patient care and customer advocacy.

Dear Shareholders

We are living in extraordinary times. The entire world is beingaffected directly and indirectly by the COVID-19 pandemic.

The pandemic is not only the most serious global health crisis sincethe 1918 Great Influenza (Spanish flu) but is also set to become one of the mosteconomically exorbitant pandemics in recent history.

Against this backdrop the International Monetary Fund (IMF) projectsglobal growth to contract significantly. As a responsible member of the global pharmafraternity we crafted our own business continuity plan in keeping with the safetyprotocol mandated by governments. Even as much of the world paused we operated ourfacilities to manufacture critical products fulfilling delivery commitments to ourcustomers globally. We are proud of our employees and other stakeholders for theircommitment during the crisis for ensuring business continuity.

FY20 saw us perform without any major supply disruptions. Ourprocurement teams continuously monitored the supply of APIs and other packaging materialskeeping adequate inventories. Our logistics department followed up with airlines/ oceanliners to ensure that commodities were picked up by the first available connection. Wehave been working to mitigate geographical dependence by identifying alternative suppliersacross the world for sourcing raw materials. In effect we are developing multiple sourceof supplies.

We ensured the well-being of our workforce through a proactive rolloutof pre- and post-lockdown measures around social distancing personal hygienesanitisation and work from home employee counselling and doctor support among others.

We also played our part as a responsible corporate by making monetarycontributions to various national and state level relief funds. We distributed PPE kitssanitisers medicines and food items among other necessities. Also we undertooksanitisation activities across several locations.

GROWTH BLUEPRINT

COVID-19 impacted select business segments like generic injectables dueto a decline in in-patient volumes and out-patient footfalls in the hospitals. However wehave seen volume improvement in other businesses which offset the decline. Overall wehave not seen any material impact on our businesses in FY20.

I am happy to report that our revenue from operations grew 18.1% toRs.230985 million in FY20 compared to Rs.195636 million in FY19. Simultaneously ourEBITDA increased 23.1% to Rs.48643 million in FY20 compared to Rs.39519 million inFY19 with margin at 21.1% (increased from 20.2% in FY19). Our net profit rose by 19.7% toRs.28310 million in FY20 compared to Rs.23647 million in FY19. Our earnings per sharetouched Rs.48.3 in FY20 compared to Rs.40.4 in FY19.

Our international sales now comprise 92% of our total revenue with theremaining 8% coming from domestic sales. We witnessed growth across all our geographies inthe Formulations business. Our diversified product basket has helped us maintain thegrowth momentum in our core geographies such as USA and Europe. We remained focused onstrengthening our existing businesses developing a differentiated & specialty productbasket and regulatory compliance.

We have consistently reduced our net debt in all the four quarters ofthe year under review. Our net debt to EBITDA came down to 0.56x as on 31 March 2020 from1.27x in 2019. We are aiming to become a zero net debt company in the next two years.

SANDOZ ACQUISITION UPDATE

During FY19 we entered into a definitive agreement with Sandoz Inc.USA to acquire their dermatology and oral solids businesses. In April 2020 we mutuallyterminated the agreement with Sandoz Inc. as approval from the US Federal Trade Commission(US FTC) for the transaction was not obtained within the anticipated timelines.

COMPLIANCE COMMITMENT

We remain committed to maintain the highest compliance standardsenabling the supply of quality medicines and promoting healthier lives. As a learningorganisation we are continuously improving our processes by conducting rigorous trainingon best practices and implementation of those practices.

TEAMWORK COUNTS

We are a team of over 23000 professionals from 35 countries working atour various divisions - API manufacturing formulations manufacturing R&D etc. Wenurture a performance culture through continuous capability building and robustperformance measurement. We are fostering leadership at all levels through trustinclusiveness empowerment and openness for better outcomes. We are proud of each memberof our team for her/his steadfast commitment in ensuring business continuity and growthdespite challenges.

SOCIAL ENDEAVOURS

We are driven by the belief of ‘giving back to society' andmaking a positive impact on the lives of people. Aurobindo Pharma Foundation is anexpression of the Company's vision towards sustainable and inclusive growth and

development globally. As part of our societal commitment we continueto work on our key priorities of promoting education supporting preventive healthcareeradicating hunger poverty and malnutrition making safe drinking water availableencouraging environmental sustainability sustaining ecological balance and conservationof natural resources encouraging rural sports and helping set up old-age homes.

THE WAY FORWARD

Adversity they say is a litmus test for societies and businessenterprises. During the year the pandemic tested the resilience of our supply chains andthe commitment of our people to rise above temporary challenges. Our operational teamskept the engine running and ensured continuous supply. We believe there may be some impacton select businesses in FY21 as well.

We are committed to consolidating our capabilities with focus on scalegeographic outreach and portfolio maximisation while upholding our organisational valuesand delivering the highest standards of quality patient care and customer advocacy.

We will continue to strengthen our capabilities and leverage ourstrategic investments to create long-term value for all stakeholders.

K. Nithyananda Reddy

Vice-Chairman

.