Despite highest-ever quarterly revenues, Aurobindo Q3 net profit falls 10%

HYDERABAD: Degrowth in its US formulations business dragged down Aurobindo Pharma’s consolidated net profits for the third quarter ended December 31, 2024, by 10% to Rs 846 crore from Rs 940 crore during the corresponding quarter of last fiscal year. This was despite an 8.5% rise in revenue from operations for Q3FY25 at Rs 7979 crore from Rs 7352 crore in Q3FY24.
The company said its US formulations revenues fell 2.3% to Rs 3671 crore during the quarter from Rs 3756 crore in Q3FY24 due to lower transient product sales. Revenues from active pharmaceutical ingredients too fell 1.6% to Rs 1006 during the quarter from Rs 1022 crore in Q3FY24.
However, revenues from Europe rose nearly 27% to Rs 2121 crore from Rs 1728 crore in Q3FY24. Revenues from growth markets formulations increased over 39% to Rs 873 crore in Q3FY25 from Rs 627 crore in Q3FY24.
Aurobindo Pharma vice-chairman & managing director K Nithyananda Reddy said the company had reported its highest-ever quarterly revenue, driven by volume growth from its 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 and are well-positioned to sustain growth and meet our objectives for the year,” Reddy said.
The company also informed the bourses that its board of directors has approved the purchase of the entire 80% stake owned by its wholly-owned step-down subsidiary, Auro Vaccines Pvt Ltd, in its step-down subsidiary Tergene Biotech Ltd to make Tergene Biotech a direct subsidiary of the company.
The company’s board also approved the company’s entering into a power purchase agreement with Swarnaaskshu Solar Power Private Ltd, which is under incorporation by the relatives of Nithyananda Reddy and in which Aurobindo Pharma will be investing in acquiring a 26% stake.