Aurobindo Pharma reported its Q3 FY25 results, revealing a 10% year-on-year (YoY) decline in consolidated net profit after tax (PAT) to ₹845.56 crore, compared to ₹939.97 crore for the same period last year.
The net profit came on an 8.5% increase in the revenue from operations to ₹7,978.5 crore (₹7,351.7 crore). Total expenditure increased to ₹6,937.5 crore (₹6,249.2 crore).
Formulation revenue increased by 10.8% to ₹6,973 crore (₹6,291 crore). U.S. formulations revenue declined 2.3% to ₹3,671 crore, mainly driven by lower transient product sales. In dollar terms, the decline was 3.7% to $435 million. The formulation revenues from European and Growth markets were higher.
Revenue from active pharmaceutical ingredients (API) declined 1.6% to ₹1,006 crore (₹1,022 crore), while ARV formulations segment revenue increased 71.2% to ₹307 crore (₹179 crore), the company said.
It was the highest-ever quarterly revenue, driven by volume growth from a diverse and expanding product portfolio coupled with new launches. “This performance highlights our resilience.
Looking ahead, we are enhancing our manufacturing capabilities and ramping up our specialty and injectable business. With these initiatives, we expect notable profitability improvements…” Vice-Chairman and Managing Director K.Nithyananda Reddy said.
Shares of Sonata Software fell as much as 15.1% on Friday to Rs 467 on the BSE after the mid-tier IT services firm reported a third-quarter profit of Rs 105 crore, a 1.4% sequential decline from Rs 106.5 crore in the preceding quarter, as margins eroded due to a deal ramp-down from its largest client.
The Bengaluru-based company’s operating margins narrowed sharply to 4.6% in the October-December period, down from 6.7% in the previous quarter, impacted by a 3% margin contraction from the client ramp-down and an additional 0.7% hit due to senior management bonuses.
Despite the sequential decline, profit rebounded from a year-ago net loss of Rs 46 crore, aided by strong domestic business and stable international services revenue. Revenue for the December quarter surged 14% year-on-year to Rs 2,842.8 crore from Rs 2,493.4 crore a year earlier, while quarter-on-quarter growth stood at 31%.
Factors Influencing Results
- US Sales Decline: US revenue decreased by 2.3% to ₹3,671 crore, primarily driven by lower sales of a transient product, accounting for 46% of consolidated revenue.
- European Growth: Europe revenue increased significantly by 23% to ₹2,121 crore, contributing 26.6% of the consolidated revenue.
- R&D Expenses: The EBITDA margin was affected by a ₹50 crore YoY increase in research and development expenses.
- Employee Costs: Elevated employee costs also contributed to the margin impact.
K Nithyananda Reddy, Vice-Chairman and Managing Director of Aurobindo Pharma, stated that the company’s highest-ever quarterly revenue was driven by volume growth from its diverse and expanding product portfolio, coupled with new launches.