Aurobindo Pharma Latest Result analysis & Implications

Aurobindo Pharma Ltd.| CMP Rs. 934 | M Cap Rs. 54727 Cr | 52 W H/L 934/281

The result is broadly in-line with expectations

Revenue from Operations came at Rs. 5924.8 Cr (-3.8% QoQ, 8.8% YoY) vs expectation of Rs. 5952.3 Cr, QoQ Rs. 6158.4 Cr, YoY Rs. 5444.6 Cr

EBIDTA came at Rs. 1257.4 Cr (-6.3% QoQ, 9.7% YoY) vs expectation of Rs. 1238.3 Cr, QoQ Rs. 1342.4 Cr, YoY Rs. 1146.4 Cr

EBITDA Margin came at 21.2% vs expectation of 20.8%, QoQ 21.8%, YoY 21.1%

Adj. PAT came at Rs. 780.7 Cr vs an expectation of Rs. 730.7 Cr, QoQ Rs. 837.6 Cr, YoY Rs. 648.5 Cr

Quarter EPS is Rs. 13.3

Share is trading at P/E of 17.5x FY21E EPS

- Rev up 9%, PAT up 23%
- US Formulations (52% of rev) up 15% as co. launched 6 new products | Got 10 ANDA approvals & filled 14
- Other International Biz degrew except ARV & API (13% of rev) | Filled 3 DMFs
- R&D: 4.3% of rev.
- Net debt down by $168m QoQ (just bridge loan & WC remain)
- Due to strong free cashflows (OCF coversion >100% of EBITDA)
- 75 Injectable approved & 335 non-injectables | Total market size for all filled ANDAs: $114B

Key Takeaways

1. debt/equity at 0.08 v/s 0.16 (QoQ)
2. Net debt lowest in last 9 qtrs
3. US sales grew by 15%
4. API growth of 6%

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