Company Update : Aurobindo Ltd By Motilal Oswal Financial Services Ltd
In-line with estimates
* Aurobindo’s (ARBP) 3QFY25 sales grew 8.5% YoY to INR79.8b (our estimate: INR76.1b).
* Overall formulation sales grew 10.8% YoY to INR69.7b.
* US formulation revenue declined 2.3% YoY to INR36.7b (CC: -3.5% YoY to USD435m; 46% of sales), due to lower transient product sales.
* Europe formulation sales grew 30.4% YoY to INR21.2b (27% of sales).
* Growth Markets sales grew 12.5% YoY to INR8.7b (11% of sales).
* ARV revenue grew 71.5% YoY to INR3.1b (2% of sales).
* API sales contracted 1.6% YoY basis to INR10.1b (13% of sales).
* Gross margin (GM) expanded 130bp YoY to 58.4%.
* EBITDA margin, however, contracted 140bp YoY to 20.4% (our estimate: 21.4%), due to an increase in employee costs/other expenses (+70bp/+170bp YoY as % of sales).
* EBITDA was up 20.4% YoY at INR16.3b (in line with estimates).
* PAT declined 2.8% YoY to INR8.8b (our est: INR9b), led by a higher tax outgo.
* For 9MFY25, revenue/EBITDA/PAT grew 9%/17.6%/14.2% YoY to INR233.4b/ INR48.9b/INR26b.
Other highlights
* ARBP filed four ANDAs with USFDA, received final approval for eight ANDAs, and launched seven products during the quarter.
* R&D spend was INR4.5b and formed 5.6% of sales for the quarter.
* Net capex of USD106m was primarily for capacity enhancement.
* Specialty & Injectables revenue in the US stood at ~USD76m (18% of total US revenue). Global Specialty & Injectables revenue on a proforma basis was ~USD121m.
* Net debt, including investments, stood at ~US84m as of Dec’24.
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