Results: Aurobindo Pharma Q3 net profit zooms over 4-fold to Rs 2,946.32 crore

Drug firm Aurobindo Pharma on Wednesday reported an over four-fold jump in consolidated net profit to Rs 2,946.32 crore for the quarter ended December 2020, mainly on account of exceptional gains.

The company had posted a net profit of Rs 705.31 crore in the corresponding period of the previous fiscal, Aurobindo Pharma said in a filing to BSE.

Consolidated revenue from operations stood at Rs 6,364.91 crore. It was Rs 5,895 crore for the same period a year ago, it added.

Profit before tax includes exceptional items of Rs 2,813.89 crore for the quarter/period ended 31 December 2020.

This consists of Rs 3,093.37 crore gain on disposal of business assets of a wholly-owned step-down subsidiary, Natrol LLC, Rs 152.39 lakh gain on account of remeasurement of equity interest in Eugia Pharma SpeCialties Ltd and Rs 431.87 crore impairment charges taken considering the difficult economic conditions and the continued impact of COVID-19 in certain markets towards product related intangibles and goodwill, the filing said.

"We maintained growth momentum in our revenue and profitability despite COVID challenges. We are witnessing a steady progress in our specialty pipeline and continue to focus on growing our business, improving efficiencies and productivity," Aurobindo Pharma MD N Govindarajan said.

Formulation revenue for the quarter recorded a growth of 11.3 per cent YoY to Rs 5,682.4 crore and accounted for 89.3 percent of total revenues, Aurobindo Pharma said.

In Q3 FY21, API business posted a revenue of Rs 682.5 crore and contributed 10.7 per cent to the consolidated revenue.

Net profit after JV share, minority interest excluding exceptional items stood at Rs 836.6 crore, the company said.

Research and development spend at Rs 390.5 crore was 6.1 per cent of revenues.

The board has approved third interim dividend of Rs 1.5 per equity share of Re 1 for the year FY20-21, the filing said.

Shares of Aurobindo Pharma closed at Rs 967.85 per scrip on BSE, up 0.88 percent from its previous close.

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