Aurobindo Pharma surges 3% as investors cheer strong Q3 earnings

Aurobindo Pharma shares surged more than 3 percent in the opening trade on February 12 after the company posted a strong performance in Q3 on all the three key parameters of profit, revenue and profitability.

The pharma company's net profit soared nearly 91 percent on year to  Rs 936.2 crore for the December quarter. Revenue jumped around 15 percent to Rs 7,351.7 crore, aided by growth across all segments, including US and Europe formulations business, specialty and injectables, anti retro0viral and active pharmaceutical ingredient (API) business.

Revenue came in at Rs 7,351.7 crore, up 14.7 percent from the year-ago quarter. The company's operational performance also improved, as the EBITDA margin expanded to 21.8 percent from 14.9 percent in last year.

The margin was also ahead of brokerage firm Macquarie's estimate of 21.4 percent. The firm said Aurobindo Pharma's Q3 earnings was operationally in-line with its estimates, with EBITDA and PAT topping its expectations. Macquarie has an "outperform" call on the stock with a price target of Rs 1,300.

At 9.31 am, Aurobindo Pharma was trading at Rs 1,025.25 on the NSE.

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US formulations revenue grew by 28.9 percent year-over-year to $45.1 crore, while Europe formulation sales saw a 1.6 percent increase to 193 million euros.

In the US, specialty and injectables revenue came around $11.2 crore in Q3, constituting 25 percent of the total US revenue. Globally, specialty and injectables revenue, on a proforma basis, amounted to about $15 crore.

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