Drugmaker Aurobindo Pharma reported a more than 32% decline in consolidated net profit to ₹520.3 crore in the first quarter.
Net Profit stood at ₹6,176.8 crore (₹5,691.8 crore) with a growth of nearly 9% in net sales. The total income of ₹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 last fiscal.
“We did well amidst the challenging environment while strengthening our growth pillars. Investments in the product portfolio continued at a healthy pace as reflected in filings and launches in the quarter,” said Vice President and MD K. Nityananda Reddy said.
During the June quarter, the company filed 13 ANDAs (abbreviated new drug applications) with the US Food and Drug Administration, including four injectables. In the same period, it received final approval for 10 ANDAs, including 4 injectable products.
“Our focus on developing a specialized product pipeline will open new avenues for the business to grow in the future. Our objective of driving continuous improvement in profitability through the new avenues will be accompanied by better profitability growth in the medium to long term,” said Mr. Reddy.
Shares of Aurobindo closed 1.98% higher at Rs 575.45 on BSE.
Yujia Reorganization
On the restructuring of Ugia Pharma Specialty, a wholly owned subsidiary, proposed last year, Aurobindo said that after evaluating various options and based on the recommendations of a committee of independent directors, its board has decided not to go ahead with the restructuring. . The committee was constituted to conduct a comprehensive evaluation of various alternatives/alternatives to Eugea’s company focusing on demerger, sterile/injectable, oncology and hormonal products.
In this current volatile economic situation, it was decided not to proceed with the view to maximize the wealth of the shareholders. The board will evaluate the option at an appropriate time in future when sentiments are more favorable to maximize shareholder wealth, Aurobindo informed the stock exchanges.