Aurobindo Pharma, India's third largest drug maker on Wednesday, posted a 11.4 percent decline in net profit to Rs 518.5 crore for the first quarter ended June FY18 with flat US generics sales and drop in revenues of API and anti-retrovirals impacting the bottomline, despite surge in Europe business.
The company reported a net profit of Rs 585 crore in the corresponding quarter of the previous year. The revenues declined 2.3 percent to Rs 3678.75 crore for the quarter ended June.
The results were below analyst estimates. The CNBC-TV18 analysts’ poll estimated a net profit of Rs 586 crore and revenues of Rs 3855.2 crore.
However the EBITDA margins were higher than analyst expectations at 22.8 percent.
The company managed to keep its expenses under control at Rs 3004 crore.
Sales of formulation or generic drugs, which contribute about four-fifths of total revenue, grew 6 percent to Rs.3,051 crore compared with Rs.3032 crore in the year-ago period.
Sales of active pharmaceutical ingredients (API), the key raw materials that go into manufacture of drugs, dropped 15 percent to Rs.625 crore due to the impact of GST implementation and deferment of certain products sale, the company said.
The US formulation business contributes 46 percent to the total revenues, declined 0.5 percent to Rs.1,694.9 crore in the first quarter on year-on-year basis, however on sequential basis the US business grew 3.1 percent.
The company received final approval for 17 abbreviated new drug applications (ANDAs) including 16 orals and one injectable and tentative approval for 3 ANDAs.
In the first quarter the company filed 13 ANDAs with USFDA including 9 in oral and 4 injectable.
As on 30th June 2017, on a cumulative basis, the company filed 442 ANDAs with USFDA and received approval for 329 ANDAs including 37 tentative approvals.
The company has launched 15 products including 3 injectables during the quarter
EU formulations contributed 25 percent to the total revenue registering a growth of 18.1 percent to Rs.831 crore, led by an acquired business that has seen profitability during the year on the back of increased focus, product pruning and cost efficiencies.
In January 2014, Aurobindo bought loss-making western European commercial operations of Irish drug maker Actavis Plc for €30 million.
The antiretroviral portfolio added Rs 244.6 crore to the total revenues of the company, posting a decline of19.3 percent.
“Our key markets continue to maintain its momentum in both YoY and QoQ despite headwinds,” said N. Govindarajan, managing director of the company.
“We believe the momentum to sustain going forward driven by changing product mix towards complex products. We remain focused on strengthening our existing businesses and developing a differentiated and specialty driven product basket,” Govindarajan added.
Aurobindo said it has spent Rs.162.3 crore or 4.4 percent of sales on research and development.
Shares of Aurobindo Pharma dropped 5.84 percent to close at Rs 684.15 on BSE, the benchmark Sensex declined 0.68 percent to end at 31,797.84 points. – Money Control