Aurobindo Pharma Q3 net up 7.6% to ₹910 cr. on higher Europe, ARV revenue

Generic drugmaker Aurobindo Pharma reported December quarter consolidated net profit increased 7.6% to ₹910 crore compared to the ₹846 crore a year earlier.

The profit came on a more than 8% increase in revenue from operations to ₹8,646 crore (₹7,979 crore). Europe formulations sales that rose 27.4% to ₹2,703 crore and ARV sales which increased 22.4% to ₹376 crore helped boost the revenue.

Mainstay U.S formulations sales increased 2.2% to ₹3,739 crore, while revenue from Growth Markets remained flat at ₹865 crore. Revenue from active pharmaceutical ingredients (APIs) declined 4.3% to ₹963 crore (₹1,006 crore). The profit is inclusive of a one-time cost of ₹65 crore due to change in Labour Code.

“Q3 reflected steady execution across Aurobindo’s core businesses, supported by stable demand and the strength of our diversified product portfolio in key markets, including the U.S. and Europe. Growth remained measured, with continued focus on operational discipline and a balanced approach to growth and profitability,” vice-chairman and MD K. Nithyananda Reddy said.

On a standalone basis, for the third quarter, Aurobindo Pharma reported net profit of ₹582 crore (₹472 crore) on a decline in revenue from operations to ₹2,747.2 crore (₹2,916.6 crore).

Besides the results, Aurobindo Pharma Board on Monday approved a proposal to file before the NCLT, Hyderabad, a scheme of amalgamation for merger of wholly owned step-down subsidiary Auro Vaccines with wholly owned subsidiary Curateq Biologics. It also approved an investment of ₹66 crore for acquiring 26% stake in Garuda Renewables in the backdrop of Aurobindo planing to enter into a power purchase agreement with Garuda to procure renewable energy.

Aurobindo Pharma also announced the appointment of former senior MD and CIO at Blackstone Asia Advisors Punita Kumar Sinha as a non-executive independent director.