Improving margins, reducing debt key challenges for Aurobindo Pharma

While revenue growth is expected to be strong, improving margins and reducing debt could be challenging

Even as peers struggled to maintain their revenue growth, Aurobindo Pharma has been able to navigate the tough generic market in the US, given its diversified product basket, differentiated portfolio, and new launches.

The company, which is one of the few to have significant presence both in the US and Europe, is expected to maintain its outperformance in the coming quarters.

Of its twin growth engines, the company’s US prospects will be driven by difficult-to-make injectables, which account for a fifth of the US revenues.

The company, which has launched 14 products during the July-September quarter in the US market