Aurobindo Pharma Q3 Results Preview: Net profit likely to jump 84%, margin may expand by 600 bps

Pharmaceutical company Aurobindo Pharma is all set to report its financial results for the October-December period (Q3 FY24) on Saturday, February 10. Analysts predict the Hyderabad-headquartered drug maker to stage a strong performance on the back of double-digit growth in American and European sales, and margin expansion.

According to Zee Business research, Aurobindo Pharma is estimated to report a consolidated net profit of Rs 904 crore for the fiscal third quarter, translating into a jump of 84.1 per cent compared with the corresponding period a year ago. The analysts peg the pharma firm's revenue for the December quarter to grow to Rs 7,421 crore from Rs 6,407 crore a year ago. 

Aurobindo Pharma is expect to report earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 1,566 crore for the December quarter, up 64.2 per cent on a year-on-year basis, according to the research.

Zee Business analysts peg the drug maker’s third-quarter margin at 21 per cent, marking growth of 600 basis points over the year-ago period. They peg the pharma company's revenue growth at 32 per cent and 13 per cent from American and European markets, respectively. Aurobindo Pharma earns about 89 per cent of its overall revenue from foreign markets. 

How Aurobindo Pharma fared in July-September period (Q2 FY24)

Aurobindo Pharma staged a strong financial performance for the September quarter, with an 83 per cent jump in consolidated net profit to Rs 752 crore and revenue growth of 26 per cent.

Its margin improved by 520 basis points to 19 per cent compared with the year-ago period, according to a regulatory filing. 

Zee Business analysts had pegged the drug maker's second-quarter net profit at Rs 665 crore, revenue at Rs 6,920 crore and margin at 17 per cent.  

Aurobindo Pharma shares: Past performance 

As of February 9, Aurobindo Pharma shares have rewarded investors with a return of 114 per cent in the past year, sharply outperforming gains of 22 per cent and 51.3 per cent in the Nifty50 and Nifty Pharma gauges. 

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