- Markets Today
- Market Vista
- Equity Probe
- Equityright Blog
- Equity Edge
Aurobindo Pharma Limited is a fully integrated pharmaceutical company, incorporated in the year 1986. The Company manufactures Generic pharmaceutical, Active Pharmaceuticals Ingredients (API), Formulation drugs and speciality products. The companies produce 7 major therapeutic products i.e. Cardiovascular products, Anti-retroviral, Anti Diabetic, Central nervous system drugs, Antibiotics, Gastroenterological, Penem, Oncology and Hormones, Ophthalmics, Controlled substances etc. In terms of revenue, Aurobindo Pharma is the 10th largest generic company globally. It is the second largest Indian company in terms of revenue.
• Financial for the year 2017-18
1. Revenue of the company increased by 7% it stood at Rs. 4,751.40 crores as compared to Rs. 4,436.9 crores in previous year. The growth was driven by an increase in Anti-Retroviral segment and revenue earned in the US which was up by 18% and 7% respectively. In terms of revenue, Formulation business increased by 7% at Rs. 39.35 crores. Active Pharmaceutical Ingredient (API) improved to 6% at Rs. 817 crores. The company reported exceptional items of Rs. 26.8 crores which represent acquisition-related items. Global Revue of the company was USD 2.5 billion.
2. API business grew by 5.8% YoY to Rs. 816 crores.
3. Net Profit declined by 21.7% in Q2FY19 at Rs. 611.40 crores Vs. Rs. 781 crores in Q2FY18 YoY it was due to higher employee cost and higher R&D expenses. It increased by 34.2% on quarterly basis Q1FY19 net profit was at Rs. 455.7 crores.
4. EBITDA contracted by 8.2% at Rs. 1026 crores in September 2018 as compared to Rs 1,117.3 crores. It increased by 31.7% QoQ basis. EBITDA Margin in Q2FY19 was 21.6% Vs 25.2% in Q2FY18.
5. Gross Profit in this quarter was Rs 2,708.5 crores as compared to Rs. 2668 crores in Q2FY18 it was up by 1.5% YoY.
6. R&D cost incurred is Rs. 217 crores i.e. 4.6% of its revenue.
7. Gross margins declined by 310 bps by -57% YoY due to change in product mix. It increased by 190bps QoQ basis this indicates lower margin pressure and high base in this quarter.
8. During this quarter the company received final approval for 13 ANDA including 1 Injectable approval. They have 25 ANDA for injectables products and have launched 14 products which include 2 Injectables in this quarter under review.
9. Intangibles under development increased by Rs. 70 crores due to acquisitions of 4 ANDA drugs under development bought by the company.
10. Finance cost increased by 2.6% QoQ basis due to an increase in LIBOR Rates.
11. Net Capex in this quarter is USD 41 million.
12. The effective Tax rate in this quarter is 22.3%
13. The Injectibles segment revenue was USD 50 million as compared to USD 36 million in the previous year.
14. The Formulation business in the US increased by 6% YoY at Rs. 2,227 crores but, the constant regular revenue decline by 3% YoY to USD 318 million due to the high base last year.
15. Aurobindo USA witnessed a decline of 11% YoY due to the higher base and one-off opportunities in this quarter. The company markets al the products of Aurobindo pharma in the USA.
16. AuroMedics, the injectables business in the US increased by 18% YoY to USD 40 million YoY. The company has filed a total 104 ANDA injectable till this September end, out of which 59 ANDA received final approval from USFDA, 1 ANDA with tentative approval and remaining 44 ANDA is under review.
17. AuroHealth, the OTC business in the US witnessed a robust growth due to new launches. The Revenue stood at USD 9.5 million. The company received 24 ANDA approval and 7ANDAs are under review.
18. Natrol business, the revenue was USD 32.3 mn
19. EU Formulation Revenue was INR 1157 crores, it increased by 4% YoY. The EU Revenue declined by 4% YoY. The company transferred 97 products manufacturing from Europe to India. The shake of EU’s formulation business decreased by 24.3% in Q2FY19 as compared to 25.1% in Q2FY18. The Growth market share increased to 6.5% in Q2FY19 Vs 5.5% in the previous year.
20. The ARV Segment represents 5.1% of the total revenue as compared to 4.7% in Q2FY18. It reported a growth of 8% on constant currency basis YoY. ARV Formulation increased by 18% at Rs. 244 crores.
21. On the basis of segment classification, the U.S Formulation business contributed 46.9% revenue overall in this quarter.
22. Aurobindo Pharma has 6 DMFs in Peptides and has submitted Pneumococcal studies to DCGI
23. In this quarter the company filled its first Nasal ANDA and the second Dermatology ANDA.
24. The Net Debt decreased by USD 20 million QoQ stood at USD 551 million.
25. The cash and Bank balance stood at USD 245 million in this quarter
26. In this quarter the company acquired certain R&D assets from Advent Pharmaceutical Pty Ltd, Australia. Advent Pharmaceutical Company works on R&D of complex special generics.