Aurobindo Pharma Q4 result preview: PAT likely to decline 11% YoY; US sales may grow up to 18%

Aurobindo Pharma Q4 result preview: Aurobindo Pharma is likely to post a consolidated profit after tax (PAT) of Rs 513 crore, down 11 per cent year-on-year (YoY), for the quarter ending March 31, 2023, according to Zee Business research.

On the flip side, the company's revenue may see a growth of 9 per cent to Rs 6,316 crore against Rs 5,809 crore logged in the year-ago period. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) are likely to grow by 2 per cent at Rs 985 crore compared to Rs 970 crore in the last fiscal. The analysts have predicted the pharmaceutical company’s margin – a key measure of profitability for a business– to decline by one per cent to 16 per cent YoY. According to the research, the company's quarter-on-quarter (QoQ) margins may improve but YoY margins are expected to decline.

The research has further suggested that the company’s US sales may grow by 17 per cent to 18 per cent at $346 million. The sales in the European Union is predicted to grow by 16 per cent to 17 per cent. The important triggers to look out for will be capital expenditure related to the project Penicillin G plant– a Rs 2,000 crore in Andhra Pradesh, input cost pressure, and price erosion.

On Thursday, at the close, shares of Aurobindo Pharma settled half a per cent higher on NSE at Rs 606.35 apiece, and on BSE, the stock stood at Rs 602.45 apiece. Aurobindo Pharma shares have gained over 30 per cent in value in the past six months, a period in which headline indices Nifty50 declined nearly a per cent.

About Aurobindo Pharma

Headquartered in Hyderabad, Aurobindo Pharma is a pharmaceutical manufacturing company with a market capital of over Rs 35 crore. The company manufactures generic pharmaceuticals and active pharmaceutical ingredients.

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