Aurobindo Pharma shares were up 2 percent to test 52-week high of Rs 860.85 on August 7 after company received approval from the United States Food and Drug Administration (US FDA) for Vancomycin Hydrochloride injection.
But on Thursday said its consolidated net profit for the quarter ended June 30 was down by 32.4 per cent to Rs 520.5 crore compared to Rs 770 in the first quarter of the last fiscal. Revenues from operations were up by 9.4 per cent to Rs 6,236 crore during the quarter under discussion compared to Rs 5,702
Aurobindo Pharma Q1FY24 Results and Recent Developments Summary:
- Share Performance: Aurobindo Pharma’s shares rose by 2% to reach a 52-week high of Rs 860.85 on August 7. This increase followed the company’s approval from the US FDA for Vancomycin Hydrochloride injection.
- Consolidated Net Profit Decline: However, the company reported a 32.4% decrease in its consolidated net profit for the quarter ended June 30, amounting to Rs 520.5 crore. This compares to Rs 770 crore in the first quarter of the previous fiscal year.
- Revenues Increase: Despite the decline in net profit, revenues from operations grew by 9.4% to Rs 6,236 crore during the discussed quarter, as opposed to Rs 5,702 crore in the same period of the previous year.
- Company’s Performance in Challenging Environment: K Nithyananda Reddy, Vice-Chairman and Managing Director, acknowledged the challenging environment but highlighted the company’s good performance. He noted that investments in the product portfolio continued at a healthy pace, leading to filings and launches during the quarter.
- Specialty Products Pipeline and Profitability: Aurobindo Pharma’s focus on developing a specialty products pipeline is expected to open new avenues for future business growth. The company aims to drive sustained improvement in profitability through newer avenues, enhancing profitability over the medium to long term.
- Regional Revenue Breakdown: In Q1 FY23, US revenue increased by 10.8% year-on-year (YoY) to Rs 2,971.1 crore, constituting 47.7% of consolidated revenues in USD terms. On the other hand, Europe revenue decreased by 2.2% YoY to Rs 1,548.1 crore, accounting for 24.8% of consolidated revenues.
Overall, Aurobindo Pharma reported a decline in consolidated net profit while experiencing growth in revenues from operations. The company’s strategic focus on specialty products and profitability enhancement aims to ensure future growth and stability.
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