Q4 2024 Aurobindo Pharma Ltd Earnings Call Transcript
Key Points
- Aurobindo Pharma Ltd (BOM:524804) 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.
- 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.
Welcome to Aurobindo Pharma Q4 FY24 earnings call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to management for opening remarks. Thank you, and over to you, sir.
Thank you, Vandit. Good morning and a warm welcome to our Q4 FY24 earnings call. I'm Shriniwas Dange from the Investor Relations team. We hope you have received the Q4 FY24 financials and the press release that was sent out on Saturday. These are also available on our website.
I would now like to introduce my senior management team on the call with us today. Represented by Dr. Satakarni Makkapat, CEO of Aurobindo Biosimilars, Vaccines and Peptide businesses and Director, Aurbindo Pharma [Limited] Mr. Yugandhar Puvvala, CEO of Eugia Pharma Specialities Limited. Mr. Swami Iyer, CEO, Aurobindo Pharma US. Mr. V. Muralidharan, President, Europe Formulations Business, and Mr. S. Subramanian, CFO.
We will begin the call with the summary highlights from the management,
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