Aurobindo Pharma (AUROPHARMA) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached ₹7,796 Cr, up 8% YoY, with net profit at ₹817 Cr and EBITDA at ₹1,566 Cr, driven by strong US and European sales and expansion in growth markets.

• Base business revenue grew 7% sequentially, with a base EBITDA margin around 21%.

• The Board completed a buyback of 5.1 million shares for ₹9,302.4 million ($111 million).

• US market accounted for 45.3% of consolidated revenue, with 14 product launches and 8 ANDA approvals in the quarter.

• Profit before tax for Q2 FY25 was ₹12,074.6 million, with total income for the quarter at ₹79,320.7 million.

Financial highlights

• Formulation business grew 11% YoY to ₹6,640 Cr, 85% of total revenue; API business was flat at ₹1,156 Cr.

• US formulation revenue was $421 million, up 3% YoY; Europe revenue grew 19% YoY to ₹2,105 Cr, 27% of consolidated revenue.

• Growth market revenue up 44% YoY to ₹812 Cr; ARV formulation business declined 23% YoY to ₹193 Cr.

• Gross margin improved to 58.8% from 55.2% YoY; reported EPS increased 9.1% YoY to ₹14.00.

• Net debt at ~$133 million as of September 2024; net capex for the quarter was $80 million.

Outlook and guidance

• Advancing biosimilars, peptides, vaccines, and CMO initiatives, with multiple launches and regulatory submissions planned through 2025.

• Targeting 21%-22% EBITDA margin for FY 2025; H2 expected to outperform H1.

• Penicillin G facility expected to break even by Q4 FY25 and contribute positively from FY26.

• Large-scale CMO facility to be commissioned in 2026, with first supplies in 2028.

• Net debt position expected to normalize by year-end as working capital releases.