InvestorQ : How did you see the quarterly performance of Aurobindo Pharma in the second quarter of fiscal 2021?
Anamika Sodhani made post

How did you see the quarterly performance of Aurobindo Pharma in the second quarter of fiscal 2021?

Juvina Maggie answered.
2 years ago

Here is what you need to know about the quarterly numbers of Aurobindo Pharma for the Sep-20 quarter.

· It surely looks like the pharma major, Aurobindo, got its Q2 prescription bang on target as net profit grew by 26% to Rs.806 crore in the Sep-20 quarter.

· Aurobindo Pharma, which is currently based out of Hyderabad, reported 15.77% growth in sales revenues at Rs.6484 crore for the Sep-20 quarter.

· Like in the case of most pharma companies, the impact of the COVID quarter was fairly limited for Aurobindo Pharma. Hence recovery was not a real issue for them.

· We now turn to operating profits. For the Sep-20 quarter, operating profits were higher by 31.06% at Rs.1176 crore due to efficient cost tweaking by Aurobindo.

· The operating margins of the company grew from 16.01% in Sep-19 quarter to 18.13% in the Sep-20 quarter; extremely impressive even by lofty pharma standards.

· Net profits for the Sep-20 quarter grew by a healthy 25.98% on a yoy basis to Rs.806 crore as the operating benefit got transmitted to the bottom line.

· PAT margins in the Sep-20 quarter moved up by 100 bps at 12.43%. The growth in the quarter was largely driven by US formulations business of Aurobindo.

· The US formulations business accounts for about half of total revenues and that particular segment grew by 12.5% to Rs.3190 crore in revenues on the top line.

· Apart from the US formulations segment, even the lucrative Europe formulations business grew by 8.1% to Rs.1515 crore in the Sep-20 quarter.

· On important barometer for most pharma companies is the R&D spending. For the quarter, Aurobindo spent Rs.408 crore on R&D or 6.3% of revenues.

· Aurobindo has also filed for final approval for 10 ANDAs with the US FDA. Aurobindo’s R&D spend percent is at par with global pharma majors.