Aurobindo Pharma, a fourth largest Indian pharma major with net sales of Rs.13,650 crore plus, has posted satisfactory financial performance during the second quarter ended September 2016. Its consolidated net profit increased by 33.5 per cent to Rs.606 crore from Rs.454 crore in the corresponding period of last year mainly due to foreign exchange gains. Foreign exchange gains amounted to Rs.20.19 crore as against a loss of Rs.43.92 crore. Its EBIDTA improved by 18.5 per cent to Rs.937 crore from Rs.791 crore. EPS improved to Rs.10.41 from Rs.7.76 in the last period.

The board of directors has recommended interim equity dividend of 125 per cent. Despite better performance, Aurobindo scrip declined by Rs.21 to Rs.750-50 in the morning session today.

Its consolidated net sales increased by 12.1 per cent to Rs.3,714 crore from Rs.3,312 crore.  The gross sales to the international markets stood at Rs.3,328 crore and the domestic sales were at Rs.445 crore representing 88 per cent and 12 per cent respectively. Formulation business registered a growth of 12.4 per cent to Rs.3,004 crore and worked out to 80 per cent of its total sales. The broad base growth across all the markets led to an increase in the formulations revenue. Similarly, API business improved by 11.3 per cent to Rs.769 crore.

Its formulations sales in US increased by 17.8 per cent to Rs.1,735 crore from Rs.1,473 crore in the similar quarter of last year and contributed 46 per cent its sales. This is due to the volume increase and the new launches in both oral and injectable segment. It launches 11 new products in US market. Its European formulations sales moved up 6.4 per cent to Rs.813 crore from Rs.764 crore and that in Emerging market increased by 13.3 per cent to Rs.177 crore from Rs.156 crore. Its sales of ARV remained stagnant at Rs.278 crore as against Rs.280 in the last period.  

N Govindarajan, managing director, said, “We witnessed satisfactory quarter on a year on year basis with enhanced cost efficiencies. The company continue to invest for long term growth by creating niche, differentiated products using newer technologies.”

Its R&D expenditure stood at Rs.148 crore and worked out to 3.9 per cent of sales. The company filed 9 ANDAs with US FDA and it received approval for 17 ANDAs. On a cumulative basis the company received 284 approvals from US FDA including 41 tentative approvals.

For the first half ended September 2016, Aurobindo's consolidated net sales increased by 12.5 per cent to Rs.7,418 crore from Rs.6,594 crore in the similar half of last year. Its net profit went up by 28.6 per cent to Rs.1,191 crore from Rs.926 crore. Foreign exchange gain amounted to Rs.27.23 crore as compared to a loss of Rs.54.50 crore. EBDITA worked out to Rs.1,842 crore as against Rs.1,546 crore, a growth of 19.2 per cent. EPS worked out to Rs.20.40 as compared to Rs.15.86 in the last period.