Aurobindo Pharma Q3 PAT slips 19% YoY to Rs 491 cr

The drug maker reported an 18.8% decline in consolidated net profit to Rs 491.26 crore in Q3 FY23 as against Rs 604.73 crore reported in Q3 FY22.

Revenue from operations rose 6.7% year on year to Rs 6,387.97 crore in the quarter ended 31 December 2022.

Profit before tax in Q3 FY23 stood at Rs 680.11 crore, down by 14.3% from Rs 793.78 crore posted in Q3 FY22.

EBITDA (before forex and other income) decreased by 6.1% to Rs 954.4 crore in the third quarter as against Rs 1,016.3 crore recorded Q3 FY22. EBITDA margin reduced to 14.9% in Q3 FY23 as compared with 16.9% reported in the same period last year.

During the quarter, formulations revenue was at Rs 5,452.5 crore, up 9.2% from Rs 4,992.2 crore recorded in Q3 FY22.

In Q3 FY23, US formulations revenue increased by 9.3% YoY to Rs 3,001.2 crore. Europe formulations revenue stood at Rs 1,701.2 crore in Q3 FY23, registering a marginal increase of 0.4% YoY.

Revenue from Growth Markets grew 25.7% YoY to Rs 498.9 crore and revenue from Anti-Retrovirals (ARV) jumped 61.3% YoY to Rs 251.2 crore during the period under review.

The pharma company's revenue from Active Pharmaceutical Ingredients (API) rose 14.9% to Rs 954.6 crore in Q3 FY23 over Q3 FY22.

Research & Development (R&D) stood at Rs 415.2 crore, 6.5% of revenues in Q3 FY23 as against 4.8% in Q2 FY23.

During the quarter, the company received final approval for 15 ANDAs including 4 injectable products from the USFDA.

Nithyananda Reddy, vice-chairman and managing director of the company, said, We witnessed an improved momentum backed by recovery across our business verticals and our endeavor is to continuously innovate and differentiate. In-line with our commitment to innovate, we increased the investments in Biosimilars. We aim to sustain the momentum with new launches, improved cost efficiencies and adherence to the highest standards of compliance, supported by our strong execution.

Meanwhile, the company's board has approved first interim dividend of Rs 3 per equity share for the financial year 22-23. The record date for the same is fixed on 17 February 2023 and dividend will be paid on or before 3 March 2023.

The drug maker's board has also approved the sale and transfer of units of the company's API non-antibiotic division to its wholly-owned subsidiary, Auro Pharma India by way of a slump sale.

The pharma company said that the transfer of the API non-antibiotic division will be done for a lumpsum consideration of Rs 3,303.17 crore. The completion of the sale is estimated in the first/ second quarter of FY 2023-24. The slump sale shall be effective from 01 April 2023 onwards, it added.

Aurobindo Pharma develops, manufactures and distributes generic pharmaceuticals, branded specialty pharmaceuticals and active pharmaceutical ingredients.

Shares of Aurobindo Pharma jumped 6% to Rs 467.15 on the BSE.

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