News

Published: November 13, 2023
Updated: November 13, 2023

Aurobindo Pharma Surges to New Heights on Robust Q2 Performance

Shares of Aurobindo Pharma soared to a fresh 52-week high, reaching Rs 1,015 in intra-day trading on Monday. Despite a weak market, the stock displayed resilience, trading with a 2% gain at Rs 999. This upward momentum can be attributed to Aurobindo Pharma's stellar Q2 performance.

Striking Q2 Results:

For the quarter ending September 2023, Aurobindo Pharma reported an impressive 84.9% growth in consolidated net profit, totaling Rs 752 crore compared to Rs 409 crore in the same period last year. The company's revenue from operations rose by 25.7% YoY to Rs 7,219 crore, fueled by robust sales in core markets, particularly Europe and the United States.

Market Outperformance:

Aurobindo Pharma has been a standout performer in the market, gaining a remarkable 18.5% this month. In contrast, the Sensex, a broader market index, recorded a modest 1.8% increase during the same period.

Operational Milestones:

The company's success is not only reflected in financial figures but also in operational achievements. Aurobindo Pharma's EBITDA margin improved significantly by 486 basis points, reaching 19.4%. This growth was attributed to operational leverage, efficiencies, and a favourable market environment with stabilizing drug prices.

Dividend Approval and Strategic Moves:

In a strategic move, Aurobindo Pharma's board approved a dividend of Rs 3 per share, emphasizing the company's commitment to rewarding shareholders. Furthermore, in October 2023, its subsidiary, Eugia Pharma Specialities Limited, received FDA approval to manufacture and market Testosterone Cypionate injection, a development expected to tap into a market estimated at $226.8 million.

Positive Industry Recognition:

Eugia Pharma Speciality Group's FDA approval marked the 169th abbreviated new drug application (ANDA) approval for the company's facilities, showcasing Aurobindo Pharma's consistent commitment to quality and innovation.

Key FDA approvals boost sentiment:

Aurobindo Pharma's outstanding performance in Q2, strategic FDA approvals, and robust market outperformance position the company as a key player in the pharmaceutical industry. With a focus on growth, efficiency, and shareholder value, Aurobindo Pharma continues to make significant strides in a competitive market landscape.