Aurobindo Pharma Q2 net profit declines nearly 14% to Rs 697 crore

The drug firm on Monday reported a decline in its consolidated net profit

Drug firm Aurobindo Pharma on Monday reported a 13.69 per cent decline in its consolidated net profit to Rs 696.71 crore in the July-September quarter mainly on account of decline in sales in the growth markets and its anti-retroviral business.

The company had posted a net profit of Rs 807.25 crore in the corresponding period of the previous fiscal, Aurobindo Pharma said in a regulatory filing.

Consolidated total revenue from operations during the period under review stood at Rs 5,941.92 crore. It was Rs 6,483.44 crore for the same period a year ago, it added.

"Business performance across most of the segments was robust, aided by gradual pick-up in demand and gradual market share gains. However, profitability was impacted by cost pressure on some of the key raw materials as well as higher logistic costs," Aurobindo Pharma MD N Govindarajan said.

The company is leveraging the opportunity to streamline its working capital to improve cash flows and will continue to see the benefits of the same over the next few quarters, he added.

"We are pleased with the steady progress in our complex generic product development and look forward to executing the same to enhance our business growth and profitability," Govindarajan said.

The US formulations revenue grew by 6.9 per cent on a Year-on-Year basis to Rs 2,967.6 crore. Europe formulation revenue stood at Rs 1,662 crore, an increase of 9.7 per cent over corresponding previous quarter, the filing said.

"Growth Markets declined by 13.5 per cent Year-on-Year and grew by 17.3 per cent QoQ to Rs 386.3 crore," it added.

ARV business revenue for Q2 FY22 was at Rs 145 crore compared to Rs 502.7 crore in Q2 FY21, a decrease of 71 per cent year-on-year and accounted for 2.4 per cent of total revenues, Aurobindo Pharma said.

Active Pharmaceutical Ingredients (API) revenue for the quarter was at Rs 780.6 crore as against Rs 829 crore in the corresponding previous period, it added.

The Board declared an interim dividend of Rs 1.50 per share, Aurobindo Pharma said.

Shares of Aurobindo Pharma closed at Rs 672.40 per scrip on BSE, down 2.55 percent from its previous close.