• Quarterly Revenue: INR7,979 crores, highest ever, with growth year on year and quarter on quarter.

• Gross Contribution: INR4,663 crores, with gross margins at 58.4%, up by 130 bps year on year.

• EBITDA: INR1,628 crores, margin at 20.4%; EBITDA before R&D at 25.8% or INR2,056 crores.

• Net Profit: INR846 crores.

• Net Debt Reduction: USD84 million.

• Formulation Business Revenue: INR6,973 crores, 11% year-on-year growth.

• API Business Revenue: INR1,006 crores.

• US Formulation Business Revenue: USD435 million, with genetic products revenue at USD297 million.

• Europe Formulation Revenue: INR2,121 crores, 23% year-on-year growth.

• Growth Market Revenue: INR873 crores, 39% year-on-year increase.

• Net CapEx: USD106 million.

• Net Cash Flow: USD49 million.

• Average Finance Cost: 5.6%.

• USD-INR Exchange Rate: INR84.46.

• Warning! GuruFocus has detected 4 Warning Signs with BOM:524804.

Release Date: February 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Aurobindo Pharma Ltd (BOM:524804) achieved its highest ever quarterly revenues in Q3 FY25, reaching INR7,979 crores, driven by strong sales in the US and Europe.

• The company's gross margins improved to 58.4%, up by 130 basis points year-on-year, supported by stable pricing and benign raw material costs.

• The US formulation business saw a 4% year-on-year revenue increase, driven by volume gains and new product launches.

• Europe's formulation segment registered a significant 23% year-on-year growth, with robust performance across growth markets.

• The company reduced its net debt by USD84 million due to improved cash flows and strong working capital management.

Negative Points

• The API business faced pricing pressures, which were only partially offset by volume gains and improved asset utilization.

• Operational losses of INR60 crore were reported for the PenG plant, which also underwent a temporary shutdown for maintenance.

• The Eugia Pharma Specialties segment experienced a decline in sales due to supply-related issues, impacting capacity utilization.

• There are concerns about the potential impact of patent expiries on products like Revlimid, which could affect future sales.

• The company faces challenges in scaling up production in its China plant, with significant revenue contributions expected only in the next two to three years.

Q & A Highlights

Q: What was the operational loss for the PenG plant this quarter, and what is the pricing outlook once it breaks even? A: We had an operational loss of around INR60 crore. The current pricing of PenG is around $26, but we are not solely dependent on PenG sales. We have added capacity across the value chain, allowing us to manage even if prices decrease. - Santhanam Subramanian, CFO