Aurobindo Pharma Shares in Focus After Release of Q2 FY25 Results

Aurobindo Pharma Limited today announced its consolidated financial results for the quarter ended September 30, 2024. Aurobindo Pharma reported a strong overall performance for the Q2FY25. The company’s formulation revenue increased by 11.3% year-on-year (YoY) to ₹6,640 crore, reflecting continued growth across various segments.

US Formulations

The US formulations segment continued to be a key driver of revenue, with a YoY growth of 4.3%, bringing in ₹3,530 crore. This accounted for 45.3% of the company’s total consolidated revenue. In USD terms, US revenue increased by 2.9% YoY to USD 421 million. The company filed 10 Abbreviated New Drug Applications (ANDAs) with the US FDA during the quarter and received final approval for 8 ANDAs. As of September 30, 2024, Aurobindo has filed 848 ANDAs with the US FDA, receiving 676 final approvals and 26 tentative approvals. The company also launched 14 new products in the US market during the quarter.

Europe Formulations

Aurobindo’s Europe formulations business showed robust growth, with revenue increasing by 19.0% YoY to ₹2,105 crore, accounting for 27.0% of consolidated revenue. In Euro terms, the revenue grew by 16.3% YoY, reaching EUR 229 million. This performance highlights the company’s strong position in the European market.

Growth Markets Formulations

The growth markets segment performed exceptionally well, with a 44.0% YoY increase in revenue, totalling ₹812 crores, which accounted for 10.4% of consolidated revenue. In USD terms, the growth market revenue increased by 42.3% YoY to USD 97 million. Domestic formulation sales for the quarter were ₹ 71 crore, reflecting healthy demand in the Indian market.

ARV Formulations

The ARV (Anti-Retroviral) formulations segment faced a decline, with revenue decreasing by 22.8% YoY to ₹193 crore, contributing 2.5% to consolidated revenue. In USD terms, ARV revenue decreased by 23.8% YoY to USD 23 million. This decrease is attributed to market dynamics and pricing pressures in the ARV space.

Active Pharmaceutical Ingredients (API)

Aurobindo’s API business saw stable performance, with revenue remaining flat YoY at ₹1,156 crore, representing 14.8% of the company’s consolidated revenue. In USD terms, API revenue declined slightly by 2.2% YoY to USD 138 million, reflecting moderate pricing and demand conditions in the global API market.

Commenting on the Company’s performance, Mr K. Nithyananda Reddy, Vice-Chairman and Managing Director of the Company said: “We are pleased with the continued growth in revenues across our key business areas this quarter, reflecting the resilience of our diversified portfolio. While profitability saw a slight dip, primarily due to the transient nature of certain business activities, our underlying performance remains strong. With a solid foundation and ongoing operational improvements, we are confident of maintaining our growth trajectory and achieving our strategic objectives for the year.” 

On November 11, 2024, Aurobindo Pharma shares opened at ₹1,330.00 and touched the day low of ₹1,310.90 at 09:45 AM.

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