- 12 Aug 2024
- ICICIdirect Research
AUROBINDO PHARMA Q1FY25- REVENUE GROWTH A TAD LOWER BUT MARGINS STRONG
AUROPHARMA - 1150 Change: -5.00 (-0.43 %)News: Revenues grew ~11% YoY to ₹ 7567 crore driven by formulations growth across segments. US grew 8% to ₹ 3555 crore and the slow down, as expected, was attributable to just 7% growth in Specialty & Injectables (~24% of US sales) where the company has undertaken remediation measures at the key Eugia III plant. Europe grew 8% to ₹ 1982 crore. Growth Markets grew 46% YoY to ₹ 709 core (including India formulations) on the back of new launches. ARV grew 21% to ₹ 229 crore. APIs grew 6% to ₹ 1092 crore. EBITDA grew 41% YoY to ₹1620 crore while EBITDA margins were improved 460 bps to 21.4%. EBITDA growth was mainly driven by strong GPM improvement (~545 bps YoY to 59.4%). Adjusted PAT grew 44% YoY to ₹ 918.2 crore.
View: The company has optically initiated remedial measures at the critical Eugia III facility and hence the slowdown was expected in the US. Going forward, sustainability of the margins will be the key determinant for investors' sentiment as the company plans to expand the R&D bandwidth and diversify into more complex models such as biosimilars. But on the other hand, the GPMs are expected to get boost due to commissioning of Pen G facility. Overall, Eugia III resolution and the launch momentum across geographies would be key determinants for investors sentiments. We wait for a detailed management commentary on the numbers and future margin guidance.
Impact: Neutral