The US formulation business contributed 45 percent to the total revenue and grew 5.8 percent to Rs 1,738.8 crore due to new product launches.
Drugmaker Aurobindo Pharma share price fell more than 7 percent intraday on Tuesday after March quarter earnings missed analyst expectations on Monday.
Consolidated profit during the quarter slipped 0.65 percent to Rs 528.8 crore but revenue from operations grew by 11.2 percent to Rs 4,049.1 crore compared to year-ago.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 9.3 percent year-on-year to Rs 788.1 crore but margin contracted 30 basis points to 19.5 percent.
A Reuters poll of analyst estimates had forecast profit at Rs 588.7 crore and revenue at Rs 4,173.3 crore for Q4FY18.
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Sales of formulations or generic drugs, which contribute about four-fifths of total revenue, grew 12.8 percent to Rs 3,248.6 crore, compared with Rs 2,879.4 crore in the year-ago period.
Sales of active pharmaceutical ingredients (API), the key raw materials that go into the production of drugs, rose 4.8 percent to Rs 799.6 crore.
The US formulation business contributed 45 percent to the total revenue and grew 5.8 percent to Rs 1,738.8 crore due to new product launches.
The European Union formulations business contributed 28 percent of total revenue and grew 48.2 percent to Rs 1,151.6 crore driven by strong growth in some of the key markets. The company said it has transferred manufacturing of 83 products from Europe to India to cut costs.
"The rising competition and price erosion of generic Renvela its key contributor during previous quarters in the US and lack of significant approvals to offset that loss has impacted the profitability in Q4F18," said an analyst who tracks pharma. Renvela is used in treatment of chronic kidney disease.
At 11:21 hours IST, the stock price was quoting at Rs 585.30, down Rs 19.80, or 3.27 percent amid high volumes on the BSE.