Aurobindo Q4FY23 PAT down -12.2% at Rs506 crore due to 40.2% spike in raw material costs on supply chain constraints
Aurobindo reported 11.4% growth in net sales revenues for the March 2023 quarter on consolidated basis at Rs6,473 crore. Revenues were up 1.03% on sequential basis. US formulations revenues were up 11.6% in Q4FY23 while Europe formulations grew 7.7% yoy. Growth markets showed 51% higher sales, albeit on a very small base. On the positive side, API revenues were up 11.4% in the quarter. For the quarter, Aurobindo spent around Rs411 crore on R&D representing 6.3% of its revenues.
The pressure on profits came from the sharply higher raw material costs by 40% amidst supply chain constraints. Also, the tax burden spiked more than 10-fold on a yoy basis and that also led the net profits lower. That is why net profits were down -12.2% although operating profits were marginally higher. In the quarter, it received final approval for 26 ANDAs including 4 injectable products from the US FDA.
Financial highlights for Mar-23 compared yoy and sequentially
| Aurobindo Pharma | |||||
Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Total Income (Rs cr) | ₹ 6,473 | ₹ 5,809 | 11.42% | ₹ 6,407 | 1.03% |
| Operating Profit (Rs cr) | ₹ 1,002 | ₹ 974 | 2.85% | ₹ 954 | 5.01% |
| Net Profit (Rs cr) | ₹ 506 | ₹ 576 | -12.18% | ₹ 491 | 3.06% |
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| Diluted EPS (Rs) | ₹ 8.64 | ₹ 9.84 |
| ₹ 8.38 |
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| OPM | 15.48% | 16.77% |
| 14.90% |
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| Net Margins | 7.82% | 9.92% |
| 7.67% |
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The operating margins tapered yoy from 16.77% to 15.48% due to pressure on raw material costs. Net margins were lower at 7.82% compared to 9.92% in year ago period. Net cash flows from operations in FY23 more than halved to Rs2,387 crore on the back of a spike in inventories in the quarter.
