Aurobindo Pharma share slips 4% post earnings; here's what brokerages say

For the fiscal year 2021, revenue from operations grew 7.3 per cent to Rs 24,774.63 crore from Rs 23,098.5 crore in the previous year

Representative Image Representative Image

Share of Aurobindo Pharma declined 4 per cent to hit an intraday low of Rs 959.90 after the company announced its earnings for Q4 and last fiscal.

For the fiscal year 2021, revenue from operations grew 7.3 per cent to Rs 24,774.63 crore from Rs 23,098.5 crore in the previous year. Net profit rose to Rs 5,333.8 crore against Rs 2,843.67 crore in the previous year.

The stock ended 2.78 per cent lower at Rs 970.00 against the previous close of Rs 997.75. Market cap of the firm fell to Rs 56,836.05 crore.

It has gained 34 per cent in the last 12 months and risen 5 per cent since the beginning of this year.

The share stands higher than 50 day, 100 day, and 200 day moving averages and lower than 5 day, 10 day and 20 day moving averages.

The company reported a consolidated net profit at Rs 801.2 crore for the quarter ended March 31, 2021. Profit in the year-ago period stood at Rs 863.16 crore.

Revenue from operations declined 2.5 per cent to Rs 6001.5 crore in the March-ended quarter against Rs 6158.43 crore a year ago.

The company informed the Natrol business was divested during the financial year 2021.

Formulation revenue for the year recorded a growth of 8.4 per cent YoY to Rs 21,686 crore and accounted for 87.5 per cent of total revenues. For the quarter, formulation revenue declined by 3.6 per cent to Rs 5,205.4 crore.

Formulation revenue Ex Natrol increased 8.9 per cent for the year and 1.6 per cent for the quarter.

In FY21, API business clocked a revenue of Rs 3,085.9 crore and contributed 12.5 per cent to the consolidated revenues.

"We are pleased to have ended the fiscal year with steady growth across our key businesses in a dynamic environment affected by the pandemic. We made good progress on our pipeline efforts to focus more on differentiated and complex generic opportunities and reached important milestones in the journey during the year," said Mr. N. Govindarajan, Managing Director.

"We remain committed to ensure business continuity so that our products reach the patients globally in a timely manner while employee safety and health remains our key priority. We look forward to execute on our key growth pillars and drive profitable growth," he added.

"We tweak our FY22E/FY23E EPS estimate by -3%/-2%, factoring in the impact of the lockdown on the offtake of medicines in Europe/growth markets, and increased spends towards the development of complex products," said Motilal Oswal.

"We expect an 11% earnings CAGR over FY21-23E, led by new launches/increased market share in key markets (US/EU), better profitability in Europe, lower financial leverage, and controlled costs," the brokerage firm added.

"Q4FY21 was a weak quarter and PAT missed estimates, but considering the strong growth outlook, we have largely retained our estimates for FY22E/FY23E," said Sharekhan.