Aurobindo Pharma Reports 10% YoY Decline in Q3 Net Profit Despite Record Revenue

Aurobindo Pharma reported a 10% year-on-year (YoY) decline in net profit to ₹846 crore for the third quarter ended December 2023, primarily due to weaker sales in the US market. This is in contrast to the strong growth witnessed in Europe, growth markets, and the antiretroviral segment.

Aurobindo Pharma Q3FY25 Performance

The company’s net profit fell from ₹940 crore in the corresponding quarter of the previous year. However, on a quarter-on-quarter (QoQ) basis, the net profit grew by 3.5%.

Aurobindo Pharma reported an 8.5% YoY increase in revenue from operations, reaching ₹7,979 crore in Q3FY25, marking its highest-ever quarterly revenue. On a QoQ basis, revenue increased by 2.3%.

EBITDA Performance and Margin Decline

Earnings before interest, tax, depreciation, and amortisation (EBITDA) before forex and other income rose by 1.7% to ₹1,628 crore—however, the EBITDA margin for the quarter contracted by 138 basis points YoY to 20.4%.

US Sales Decline While Europe and Other Markets Show Strong Growth

US formulations revenue, which accounts for 46% of the company’s total revenue, declined by 2.3% YoY to ₹3,671 crore. In contrast, the European formulation segment, contributing 26.6% of total revenue, grew significantly by 22.7% YoY to ₹2,121 crore.

Revenue from growth markets surged by 39.3% YoY to ₹873 crore, while the antiretroviral segment recorded an impressive 71.2% YoY growth, reaching ₹307 crore.

API Revenue and R&D Expenditure

The company’s active pharmaceutical ingredient (API) revenue declined marginally by 1.6% YoY to ₹1,006 crore.

Aurobindo Pharma’s research and development (R&D) expenditure for the quarter stood at ₹450 crore, representing 5.6% of its total revenue.

Despite facing headwinds in the US market, the company’s overall performance was supported by robust growth in Europe, emerging markets, and the antiretroviral segment.

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