Aurobindo Pharma on Thursday said its profit for the quarter ended December 2016 rose 6 percent to Rs.578.6 crore on higher sales of generic drugs in the US. The company posted a net profit of Rs 544.3 crore in the same period previous year. Revenue for the third quarter rose 11.4 percent to Rs 3,906.2 crore.
While the net profit came in below the estimate of CNBC-TV18 analyst poll estimate of Rs.612 crore, the revenues stood higher at Rs 3,857.2 crore. Sales of formulations or generic drugs, which contribute about four-fifths of total revenue, grew 11.4 percent to Rs 3,130.2 crore, compared with Rs 2,809.4 crore in the year-ago period. “In Q3FY17, we have recorded good overall growth on YoY basis. Despite pricing pressure in select products, we have registered a growth of 11.4 percent YoY due to diversified product basket and markets,” said N Govindarajan, managing director of the company. “We remain focused on developing a differentiated and speciality product basket which will drive our future growth,” Govindarajan said. Sales of active pharmaceutical ingredients (API), the key raw materials that go into the production of drugs, increased 11.6 percent to Rs 775 crore. The US formulation business contributed 45 percent to the total revenue and grew 12 percent to Rs 1,745 crore due to “to new product launches in both oral and injectable segments and volume increase,” the company said in a statement. The drugmaker's European Union formulations business contributed 22 percent of total revenue and grew 9.2 percent to Rs 855.4 crore, led by the acquired business that turned profitable. In January 2014, Aurobindo bought loss-making Western European commercial operations of Irish drugmaker Actavis Plc for €30 million. The antiretroviral (ARV) business increased by 11.9 percent during the quarter. ARVs used in the treatment of HIV-AIDS contributes about 9 percent of Aurobindo’s gross sales. During the third quarter, the company filed nine abbreviated new drug applications (ANDA) with the US Food and Drug Administration (USFDA), including five in the oral category and four in the injectable category. During the period, the company also received 22 ANDA approvals from the USFDA. On a cumulative basis, the company received 303 approvals from the USFDA, including 41 tentative approvals. The results were announced after market hours. Shares of Aurobindo rose 1.17 percent to close at Rs.706.40 on BSE, the benchmark Sensex gained 0.14 percent to end 28,329.70 points.
While the net profit came in below the estimate of CNBC-TV18 analyst poll estimate of Rs.612 crore, the revenues stood higher at Rs 3,857.2 crore. Sales of formulations or generic drugs, which contribute about four-fifths of total revenue, grew 11.4 percent to Rs 3,130.2 crore, compared with Rs 2,809.4 crore in the year-ago period. “In Q3FY17, we have recorded good overall growth on YoY basis. Despite pricing pressure in select products, we have registered a growth of 11.4 percent YoY due to diversified product basket and markets,” said N Govindarajan, managing director of the company. “We remain focused on developing a differentiated and speciality product basket which will drive our future growth,” Govindarajan said. Sales of active pharmaceutical ingredients (API), the key raw materials that go into the production of drugs, increased 11.6 percent to Rs 775 crore. The US formulation business contributed 45 percent to the total revenue and grew 12 percent to Rs 1,745 crore due to “to new product launches in both oral and injectable segments and volume increase,” the company said in a statement. The drugmaker's European Union formulations business contributed 22 percent of total revenue and grew 9.2 percent to Rs 855.4 crore, led by the acquired business that turned profitable. In January 2014, Aurobindo bought loss-making Western European commercial operations of Irish drugmaker Actavis Plc for €30 million. The antiretroviral (ARV) business increased by 11.9 percent during the quarter. ARVs used in the treatment of HIV-AIDS contributes about 9 percent of Aurobindo’s gross sales. During the third quarter, the company filed nine abbreviated new drug applications (ANDA) with the US Food and Drug Administration (USFDA), including five in the oral category and four in the injectable category. During the period, the company also received 22 ANDA approvals from the USFDA. On a cumulative basis, the company received 303 approvals from the USFDA, including 41 tentative approvals. The results were announced after market hours. Shares of Aurobindo rose 1.17 percent to close at Rs.706.40 on BSE, the benchmark Sensex gained 0.14 percent to end 28,329.70 points.