Mumbai: net profit dropped 2.1 per cent to Rs 696.7 crore in the second quarter ended September on a year-on-year (YoY) basis due to a fall in sales of antiretroviral (ARV) formulations.
In the same quarter previous year the drug maker’s net profit stood at Rs 711.4 crore.
Revenues declined 2.1 per cent to Rs 5942 crore in Q2FY22 compared to the previous year’s Rs 6069 crore.
The EBITDA margin for the quarter was 20 per cent which was down 130 basis points compared to the same period last year.
The company said it was able to reduce working capital debt by $62 million quarter on quarter (QoQ) basis. Aurobindo has a gross debt of Rs 4,391.2 crore.
The antiretroviral business, which is largely institutional business saw sales decreasing 71 per cent YoY from Rs 502 crore in Q2FY21 to Rs 145 in Q2FY22. ARVs are used in the treatment of HIV-AIDS.
The company said the business was affected by higher stocking on advanced procurement last year, amid Covid-19 uncertainties by multilateral
agencies.
Research & Development (R&D) spend was at Rs 399 Cr, which is 6.7 per cent of revenues.
The US formulation business contributed 50 per cent to the total revenue and grew 6.9 per cent YoY to Rs 2968 crore.
The company has launched 6 products, including three injectables during the quarter
The European Union formulations business contributed 28 per cent of total revenue and grew 9.7 per cent to Rs 1662.3 crore on YoY basis in Q2FY22.
Revenue from emerging markets or growth market formulations as the company calls it declined by 13.5 per cent YoY in Q2 FY22. The growth market formulation accounted for 7 per cent of revenue.
Sales of active pharmaceutical ingredients (API), the key raw materials that go into the production of drugs, rose 5.8 percent to Rs 780.6 crore.
“Business performance across most of the segments was robust, aided by gradual
pick-up in demand and gradual market share gains,” said N Govindarajan, managing director of the company.
“However, profitability was impacted by cost pressure on some of the key raw materials as well as higher logistic costs. We are leveraging the opportunity to streamline our working capital to improve cash flows and will continue to see the benefits of the same over the next few quarters,” Govindarajan added.
Govindarajan said steady progress in complex generic product development and execution is expected to enhance our business growth and profitability in upcoming quarters.
The results were announced after market hours Monday.
Shares of Aurobindo Pharma dropped 2.55 per cent to Rs 672.40 on BSE, while the benchmark Sensex gained 0.80 per cent to end 60,545.61 points.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
