Aurobindo Pharma reports 40% rise in Q4; stocks up 4%

Aurobindo Pharma, India's fourth-largest drugmaker by sales, said higher sales in the United States (US) and emerging markets helped its fourth-quarter (Q4) net profit grow 40%, above estimates, sending shares up as much as 4%.

The company's net profit for the January-March quarter rose to Rs 5.63 billion ($83.9 million) from Rs 4.03 billion a year earlier, Aurobindo said in a statement late on Monday. Analysts had forecast profit of Rs 5.55 billion, according to an average of nine estimates polled by Thomson Reuters.

The company's shares rose as much as 4% to Rs 786.80 in early trade on Tuesday, while the broader market was down 0.15%. 

Its sales in emerging markets and the United States, Aurobindo's largest market, were up about 25% each, while Europe sales were up about 9%, the company said. 

Aurobindo has benefited over the past year from a spate of new drug approvals in the United States (US) at a time when many of its peers are grappling with a slower approvals pace due to regulatory actions.

Aurobindo, which gets about 85% of its sales from international markets, said it received US approval to sell 17 new products in the fourth quarter (Q4).

Separately, larger rival Sun Pharmaceutical Industries reported fourth-quarter (Q4) profit below estimates and forecast lower-than-expected annual sales on Tuesday.

At 12:14 hours, the shares of Aurobindo Pharma were trading up 3.90% or Rs 29.45 at Rs 783.90 per scrip on the Bombay Stock Exchange (BSE).