- 12 Feb 2024
- ICICIdirect Research
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AUROBINDO PHARMA Q3FY24'S STRONG NUMBERS DRIVEN BY US MOMENTUM
AUROPHARMA - 1150 Change: -5.00 (-0.43 %)News: Revenues grew ~15% YoY to Rs 7352 crore due to a strong performance in the US & Growth Markets. US grew 29% YoY to Rs 3756 crore on the back of 21 launches including 4 specialty & injectables products during the quarter. Growth Markets grew 26% YoY to Rs 627 core on the back of new launches. EBITDA grew 68% YoY to Rs 1601 crore while EBITDA margins were improved 690 bps to 21.8%. Adjusted PAT grew 91% YoY to Rs 936 crore.
Views: Strong US traction reflected on overall buoyant performance with significant margins improvement. The quality of the US portfolio is improving with growing contributions from specialty products which now account for ~25% of the US portfolio. 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. Legacy cGMP and governance issues are expected to abate slowly.
Impact: Positive
Strong US traction reflected on overall buoyant performance with significant margins improvement. The quality of the US portfolio is improving with growing contributions from specialty products which now account for ~25% of the US portfolio. 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. Legacy cGMP and governance issues are expected to abate slowly.