Pharmaceutical giant Aurobindo Pharma has reported a 12% decline in its consolidated net profit for the fourth quarter ended March 31, 2023. Despite a notable 11% increase in revenue from operations, the company’s net profit stood at Rs 506 crore compared to Rs 576 crore in the corresponding quarter of the previous financial year, according to the company’s announcement to the stock exchanges on Saturday.
Throughout the fourth quarter of FY22, Aurobindo Pharma witnessed a steady rise in revenue from operations, with figures reaching Rs 6473 crore compared to Rs 5809 crore during the same period in FY22. This growth in revenue was driven by the company’s consistent performance in the pharmaceutical sector. However, the increased tax burden impacted their overall net profit.
The financial year 2022-23 also saw a decline in Aurobindo Pharma’s consolidated net profit, falling by 27% to Rs 1928 crore from Rs 2647 crore in FY22. Despite this setback, the company managed to achieve a 6% increase in consolidated revenue from operations, which amounted to Rs 24,855 crore for FY23 compared to Rs 23,456 crore in FY22.
In a statement to the stock exchanges, Aurobindo Pharma explained the factors contributing to the change in net profit: “During the quarter ended March 31, 2022, the holding company elected to exercise the option permitted under Section 11SBAA of the Income-tax Act, 1961, as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the holding company has recognized provision for income tax for the year ended March 31, 2022, and re-measured its deferred tax assets & liabilities based on the rate prescribed in the said Section. The impact of this change has been recognized in the statement of profit and loss during the year ended March 31, 2022.”
A closer look at Aurobindo Pharma’s revenue streams reveals that revenues from formulations experienced a 5.4% increase during FY23, largely driven by growth in the US market (4.8%), growth markets (31.2%), and ARV (Antiretroviral) segment (14.6%). However, the European market experienced a slight decline of 0.8% in revenue.
On the active pharmaceutical ingredients (APIs) front, Aurobindo Pharma saw a positive growth of 9.4% in revenues. This growth was primarily attributed to a remarkable 17.6% increase in revenues from the Betalactum segment, despite a 2.3% drop in revenues from the Non-Betalactum business.
Despite the challenges posed by increased tax obligations, Aurobindo Pharma remains committed to maintaining its strong presence in the pharmaceutical industry. The company continues to focus on expanding its market share and delivering innovative healthcare solutions to its customers.
As the pharmaceutical landscape evolves, Aurobindo Pharma aims to leverage its expertise and capabilities to adapt to changing market dynamics and emerge stronger in the coming quarters. By prioritizing strategic investments and optimizing operational efficiencies, the company aims to achieve sustainable growth and enhance shareholder value in the long run.
