Drugmaker Aurobindo Pharma reported first-quarter consolidated net profit slid more than 32% to ₹520.3 crore.
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The net profit declined on an almost 9% increase in net sales to ₹6,176.8 crore (₹5,691.8 crore). Total income at ₹6,276.5 crore (₹5,811.8 crore) was almost 8% higher. The EBITDA margin stood at 15.5% as against 21.2% in the same period of the previous fiscal.
“We delivered a good performance amid challenging environment while reinforcing our growth pillars. Investments in product portfolio continued at a healthy pace as reflected in the filings and launches in the quarter,” Vice-Chairman and MD K. Nithyananda Reddy said.
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During the June quarter, the company filed 13 ANDAs (abbreviated new drug applications), including four Injectables with the U.S. Food and Drug Administration. In the same period, it received final approval for 10 ANDAs, which included 4 injectable products.
“Our focus on the development of specialty products pipeline will establish new avenues to grow the business in future. This along with our aim to drive sustained improvement in profitability through newer avenues will enhance improved profitability over medium to long term,” Mr. Reddy said.
Aurobindo shares on BSE closed 1.98% higher at ₹575.45 each.
Eugia restructuring
On the restructuring of wholly owned subsidiary Eugia Pharma Specialties that was proposed last year, Aurobindo said after evaluating various options and based on the recommendations of a committee of independent directors its Board has decided not to proceed with the restructuring. The committee was formed to undertake a comprehensive evaluation of various alternatives / options, including demerger, of Eugia, a company focused on sterile / injectables, oncology and hormonal products.
The decision not to proceed was taken keeping in mind maximisation of shareholder wealth in this current volatile economic situation. The Board will evaluate the option at an appropriate time in future when the sentiments are more conducive towards maximisation of shareholder wealth, Aurobindo informed the stock exchanges.