- Revenue (Q4 FY24): INR7,850 crores, up 17% year-on-year.
- Revenue (Full Year FY24): INR29,000 crores, up 17% year-on-year.
- EBITDA (Q4 FY24): INR1,687 crores, up 68% year-on-year and 5% quarter-on-quarter.
- EBITDA Margin (Q4 FY24): 22.3%, up from 15.5% in the same quarter last year.
- EBITDA (Full Year FY24): INR5,843 crores, up 55% year-on-year.
- EBITDA Margin (Full Year FY24): 20.1%, up from 15.1% last year.
- Net Profit (Q4 FY24): INR909 crores, up 80% year-on-year, down 3% quarter-on-quarter.
- Net Profit (Full Year FY24): INR3,173 crores, up 65% year-on-year.
- Formulation Business Revenue (Q4 FY24): INR6,510 crores, up 21% year-on-year.
- Formulation Business Revenue (Full Year FY24): INR24,419 crores, up 19% year-on-year.
- API Business Revenue (Q4 FY24): INR1,019 crores, flat year-on-year.
- API Business Revenue (Full Year FY24): INR4,241 crores, up 10% year-on-year.
- US Formulation Revenue (Q4 FY24): INR3,588 crores, up 22% year-on-year.
- US Formulation Revenue (Full Year FY24): INR13,867 crores, up 23% year-on-year.
- Injectables and Specialty Business Revenue (Q4 FY24): USD143 million, up 26% year-on-year.
- Injectables and Specialty Business Revenue (Full Year FY24): USD541 million, up 31% year-on-year.
- European Formulation Revenue (Q4 FY24): INR1,872 crores, up 10% year-on-year.
- European Formulation Revenue (Full Year FY24): EUR798 million, up 12% year-on-year.
- Growth Markets Revenue (Q4 FY24): INR852 crores, up 50% year-on-year.
- Growth Markets Revenue (Full Year FY24): USD281 million, up 29% year-on-year.
- ARV Formulations Revenue (Q4 FY24): INR238 crores, up 31% year-on-year.
- ARV Formulations Revenue (Full Year FY24): INR868 crores, down 11% year-on-year.
- Gross Margin (Q4 FY24): 59.6%, up from 57.1% last year.
- Gross Margin (Full Year FY24): 56.5%, up from 54.6% last year.
- R&D Expenditure (Q4 FY24): INR392 crores, 5.2% of revenue.
- R&D Expenditure (Full Year FY24): INR1,480 crores, 5.1% of revenue.
- Net CapEx (Q4 FY24): USD70 million.
- Net CapEx (Full Year FY24): USD422 million.
- Net Cash Position (End of March 2024): USD18 million.
- Gross Debt (End of March 2024): USD758 million.
Release Date: May 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aurobindo Pharma Ltd (BOM:524804, Financial) achieved its highest ever sales and EBITDA for both the quarter and the year, with FY24 sales reaching INR 29,000 crores, surpassing their internal target.
- The company reported a significant improvement in profitability, driven by volume gains, new product launches, expansion into new growth markets, and stable pricing.
- EBITDA margin for FY24 was 20.1%, exceeding the guidance of 20%, and the EBITDA before ForEx and other income grew by 55% year-on-year.
- The US formulation business saw a 23% year-on-year increase in revenue to INR 13,867 crores, driven by volume gains, stable demand, and new product launches.
- The European formulation business grew by 12% year-on-year, with revenue reaching EUR 798 million, supported by growth across various markets.
Negative Points
- Net profit for Q4 FY24 decreased by 3% quarter-on-quarter to INR 909 crores, primarily due to a one-time exceptional loss of INR 122 crores.
- The API business revenue remained flat year-on-year for Q4, contributing around 13% of total revenues.
- The company faces challenges with the Eugia-3 plant, which has been classified as an Official Action Indicated (OAI) by the FDA, impacting 29 pending ANDAs.
- The growth in the injectable and specialty business in the USA was affected by the temporary shutdown of the Eugia-3 plant, leading to a quarter-on-quarter decline.
- The ARV formulations business experienced an 11% year-on-year decrease in revenue for FY24, mainly due to pricing pressures.
Q & A Highlights
Q: What is the growth outlook for FY25?
A: We are not providing an overall growth outlook for the company, but respective business leaders will address their specific areas.
Q: How will the OAI classification of Eugia-3 impact growth, and what are the plans to mitigate this?
A: We have built the Vizag plant as a backup for Eugia-3. The Vizag plant audit is completed, and we expect the first approval soon. We plan to file more products from Vizag and dual file from both plants. We anticipate one year of impact but hope to resolve issues by the second year. (Yugandhar Puvvala, CEO)
Q: What is the update on the biologic CDMO LOI with MSD?
A: We are on track to close the definitive agreement by May 31. The project is progressing well, with Phase 1 capacities expected to be operational by 2026. (Satakarni Makkapati, Non-executive and Non-Independent Director)
Q: What is the status of the remediation efforts for Eugia-3?
A: Remediation started immediately after the audit, and we are in the fourth month. We expect another three to four months of remediation before approaching the FDA again. (Yugandhar Puvvala, CEO)
Q: Can you provide an update on key biologic projects and their approval timelines?
A: Trastuzumab has received marketing authorization in India and is under review in Europe. We expect to file with the US FDA in the next three months. Two more oncology biosimilars are also under review in Europe, with potential approvals by Q3 or Q4. (Satakarni Makkapati, Non-executive and Non-Independent Director)
Q: What is the outlook for the injectable business in FY25?
A: FY25 will be a year of muted growth, with double-digit growth expected but not as high as FY24. Significant growth is expected from FY26 onwards. (Yugandhar Puvvala, CEO)
Q: How will the European business grow with the commissioning of Vizag and China facilities?
A: The Vizag unit's contribution will be substantial, and the China unit is expected to commence supplies in FY25. We aim to grow ahead of the market growth rate. (V. Muralidharan, President, Europe Formulations Business)
Q: What are the expected margins for FY25?
A: We are targeting an EBITDA margin of 21% to 22%. The ramp-up of the Pen-G project and stable pricing environment will support this target. (Santhanam Subramanian, CFO)
Q: What is the status of the Pen-G project and its impact on the market?
A: The Pen-G project is progressing well, with full-scale operations expected by September. The price of Pen-G is stable, and the focus is on converting it into 6-APA and other derivatives. (Santhanam Subramanian, CFO)
Q: What is the outlook for the biosimilars business and its impact on margins?
A: We have spent around $340 million on biosimilars, with $75 million capitalized. The biosimilars business is expected to contribute significantly to margins from FY27 onwards. (Satakarni Makkapati, Non-executive and Non-Independent Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
