Aurobindo net rises fourfold on U.S. sale

Aurobindo Pharma on Wednesday reported a fourfold jump in third-quarter consolidated profit to ₹2,946.3 crore, boosted mainly by one-time gains from the sale of a step-down subsidiary in the U.S.

Excluding exceptional items (net of tax), the consolidated net profit after JV share and minority interest was ₹836.6 crore, an almost 17% increase, the drugmaker said.

Revenue from operations rose 8% to ₹6,364.9 crore, the company said.

The board had approved an interim dividend of 150% or ₹1.50 per share, Aurobindo added.

MD N. Govindarajan said the company firm maintained growth momentum in revenue and profitability despite COVID-19 challenges. “We are witnessing a steady progress in our speciality pipeline and continue to focus on growing our business, improving efficiencies and productivity,” he said.

Notes accompanying the results said profit before tax includes exceptional items of ₹2,813.89 crore. The company made a gain of ₹3,093.37 crore from disposal of business assets of wholly-owned step-down subsidiary Natrol LLC and ₹152.39 crore following account of remeasurement of equity interest in Eugia Pharma Specialties, a joint venture company.

It also took impairment charges of ₹431.87 crore “considering the difficult economic conditions and the continued impact of COVID-19 in certain markets towards product related intangibles and goodwill.”

Operational performance wise, formulations revenue increased 11.3% to ₹5,682.4 crore while API revenue declined 13.6% to ₹682.5 crore.

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