Aurobindo Pharma, a third largest Indian pharma company with net sales of Rs.14,800 crore plus, has received setback during the first quarter ended June 2017 and its consolidated net profit as well as net sales declined, due to GST and lower sales in US. Its net profit declined by 11.3 per cent to Rs.519 crore from Rs.585 crore and net sales by 2.3 per cent to Rs.3,621 crore from Rs.3,705 crore. Its EBIDTA went down by 4.1 per cent to Rs.875 crore from Rs.912 crore. EPS worked out to Rs.8.85 as against Rs.9.99 in the last period.
Its total formulations sales improved slightly by 0.6 per cent to Rs.3051 crore from Rs.3,032 crore. International sales worked out to 91 per cent. Its US formulation sales declined marginally to Rs.1,695 crore from Rs.1,704 crore, but accounted 46 per cent of total revenues. However, its sales in Europe increased by 10.4 per cent to Rs.918 crore. Europe business contributed 25 per cent to its sales. The acquired Actavis business continue to witness improvement in profitability. Its subsidiary Agile Pharma B V Netherlands has completed the acquisition of Generis Farmacemutica SA and It has transferred manufacturing of 71 products from Europe to India.
ARV sales declined by 19.1 per cent to Rs.245 crore from Rs.303 crore and growth markets sales remained flat at Rs.194 crore. Similarly, its APIs sales declined by 15 per cent to Rs.625 crore from Rs.735 crore.
Its research & development expending amounted to Rs.162 crore and worked out to 4.4 of its revenue. It filed 13 ANDAs with US FDA including 9 in oral and 4 injectable. It received final approval for 17 ANDAs including 16 orals & one injecjtable and tentative approval for 3 ANDAs. The company filed total 442 ANDAs upto June end and received approval for 329 ANDAs. It has launched 15 products including 3 injectjables during the quarter.
N Govindarajan, managing director, said, Our key markets continue to maintain its momentum in both YoY and QoQ despite headwinds. 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.”
The company has decided to transfer 24.109 sq. yards land situated at plot No1, Raidurg (V), Serilingampalli, Ranga Reddy district to its wholly owned subsidiary viz., Raidurgam Developers Ltd. Further, the management decided to increase its stake in Tergene Biotech Pvt Ltd, a 60:40 joint venture between Aurobindo and Promoters of Tergene, engaged in vaccine development, to 80 per cent. It will subscribe 56.50 lakh equity shares of Rs.10 each of Tergene at par aggregating to Rs.5.65 crore.