Aurobindo Pharma (AUROPHARMA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue grew to ₹75,670.2 million, up 10.5% year-on-year, driven by new launches, market share gains, and expansion into new geographies.

• Net profit rose 61.1% year-on-year to ₹9,182.2 million, reflecting strong operational performance and margin expansion.

• The Board approved a buyback of up to 5,136,986 shares at a maximum price of ₹1,460 per share, totaling ₹7,500 million, with the first-ever buyback completed in August 2024.

• US market contributed 47% of consolidated revenue, with 11.6% YoY growth in US revenue (excluding Puerto Rico).

• Biosimilars pipeline advanced, with key regulatory milestones and product launches expected in FY25.

Financial highlights

• EBITDA margin for Q1 FY25 stood at 21.4%, up from 16.8% YoY, supported by stable raw material prices and higher plant utilization.

• Gross margin improved to 59.4% from 53.9% year-on-year, with gross contribution at ₹4,494 crore.

• R&D expenditure was ₹339 crore (4.5% of revenue); net capex for the quarter was $74 million.

• Net cash position improved to ~$101 million as of June 2024, with gross debt at ₹6,949 crore.

• Basic & diluted EPS at ₹15.69, up 61.4% YoY.

Outlook and guidance

• Confident of achieving internal EBITDA margin target of 21%-22% for FY25.

• Pen-G plant ramp-up expected to support margins and revenue from Q2 FY25; China plant commercialization expected from Q3 FY25.

• European and US markets expected to maintain growth momentum; biosimilar pipeline progressing with key filings planned for next year.

• Statutory auditors issued an unmodified conclusion for both standalone and consolidated results for Q1 FY25.