Aurobindo Pharma Q1 net profit up 24% at Rs 584 crore

Indian generics pharmaceutical company Aurobindo Pharma Limited has reported a 24% increase in consolidated net profit at Rs 584.6 crore for the quarter ended June, 2016 driven by double-digit sales growth across major markets led by the US formulations business. The net profit for the year ago period was Rs 471.3 crore.

The income from operations stood at Rs 3,725.9 crore, an increase of 12.9% to over Rs 3,298.9 crore in the corresponding quarter previous year.

However, the formulations business that has contributed 80.5% to the total revenue, grew by 15.9%. The company was able to improve the EBITDA margin by 188 basis points at 23.9% in this quarter as compared to an EBITDA margin of 22% in the year ago period.

Among major geographies US sales registered the highest growth of 20.5% at Rs 1,703.9 crore, contributing 45% to the gross sales, on the back of new launches in oral and injectables segments.

"The quarter started with a double digit growth y-o-y on the back of overall business performance. With focus on execution and capability enhancements we continue to progress on specialty generics for a sustained long term growth," Aurobindo Pharma, managing director, N Govindarajan said.

Europe, Aurobindo's second biggest market, saw a sales growth of 12.1% at Rs 831.2 crore as compared with Rs 741.8 crore in the corresponding previous quarter. European formulations business contributed 22% to the gross sales, according to the company.