Aurobindo Pharma revenues muted, margins in lineAUROPHARMA - 1024 Change: 7.30 (0.72 %)
News: Aurobindo’s Q4FY22 revenues declined 3% YoY to | 5809 crore (I-direct estimate: | 5974 crore) amid a 4% YoY decline in US business to | 2728 crore (I-direct estimate | 2886 crore) and 52% YoY de-growth in ARV to | 236 crore (I-direct estimate: | 172 crore). Europe de-grew mere 1% YoY to | 1541 crore (I-direct estimate: | 1608 crore) while RoW markets grew 28% YoY to | 391 crore (I-direct estimate | 382 crore). API segment posted robust growth of 15% YoY to | 913 crore (I-direct estimate | 913 crore). EBITDA margins were down 447 bps YoY at 16.8% (I-direct estimate: 16.8%) mainly due to higher input cost. EBITDA de-grew 24% YoY to | 974 crore against I-direct estimates of | 1001 crore. Adjusted PAT de-grew 8% YoY to | 734 crore (I-direct estimate: | 558 crore). [Note: Profit is adjusted for one-off of | 162.7 crore in Q4FY22]
Views: Aurobindo Pharmaceuticals’ Q4FY22 revenues were below I-direct estimates except for RoW markets and ARVs, while margins were in-line. Quarterly fluctuations notwithstanding, Aurobindo continue to see volume growth in the complex generics segment but having significant exposure to US generics OSD space, the company continues to face growth challenges in the US (Injectable business, although looks promising, accounts for less than 25% of US business) due to unprecedented pricing pressure. This, along with ongoing cGMP issues are some medium term overhangs for the company besides dwindling margins.