In Q1FY22, the company’s profit after tax (PAT) was down 1.7 per cent year on year (YoY) and 4 per cent quarter on quarter (QoQ) at Rs 770 crore. It was, however, in-line with analysts' estimate on higher than expected other income and a lower tax rate. Revenue, meanwhile, de-grew 3.8 per cent YoY and 5.0 per cent QoQ to Rs 5,702 crore.
US revenue in Q1FY22 declined by 1.5 per cent YoY to Rs 2,681 crore, accounting 47 per cent of consolidated revenue. ARV business revenue for the quarter was at Rs 296 crore, down 30.3 per cent YoY, and accounted for 5.1 per cent of revenue. Ebitda (earnings before interest, taxes, depreciation, and amortization) margins remained flat at 21.2 per cent.
Separately, Aurobindo Pharma said the company has entered into definitive agreements under which the Company will subscribe to fresh equity shares in Cronus Pharma Specialities India Private Limited (Cronus) amounting to Rs 420 crore.
Cronus is a Hyderabad based generic veterinary pharmaceutical products company engaged in development, manufacturing and sale of veterinary pharmaceutical products, Subsequent to this investment, the Company will own 51 per cent of the equity share capital of Cronus, Aurobindo Pharma said.
The company further said the acquisition will provide the company a foothold in the $48 billion global animal health market. Cronus has 67 products in its pipeline, of which 22 have been filed and 6 have been approved by the Centre for Veterinary Medicine, USFDA.
“Quarterly fluctuations notwithstanding, Aurobindo possesses one of the best enduring generics ecosystem among peers (vertically integrated model, lower product concentration) to withstand the volatility in the US generics space. The company has also significantly improved its net debt position from foregoing the Sandoz deal and from the sale of its Natrol business. On the regulatory front, while a few other plants still remain under the USFDA scrutiny, the erstwhile clearance of a critical plant (Unit IV) indicates that the company continues to work towards stricter adherence,” ICICI Securities said in a note.
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