Aurobindo Pharma at new high

Aurobindo Pharma, which had closed yesterday at Rs.750.65, jumped up to hit a new  record high today at Rs.791, with volumes spurting over 2.2 times.

A deferred tax reversal of Rs.101 crore and rise in topline helped the company posted a good 45% (YoY) jump in consolidated net profit at Rs.850 crore.

Its revenue from operations rose 16% at Rs.6158 crore. During the fourth quarter, revenue from formulations registered a growth of 23% at Rs 5,401 crore while API (active pharmaceutical ingredients) business posted a sale of Rs 756 crore and contributed 12% to the consolidated revenue.

EBITDA is up 26% at Rs.1342 crore with margins improving from 20% to 21.8%.

Significantly, its finance cost has come down from Rs.50 crore to Rs.32 crore. Its gross debt at end of FY20 was at Rs.5566 crore v/s Rs.6967 crore (YoY). After taking into consideration cash balance of Rs.2848 crore, its net debt currently stands at Rs.2718 crore, down from 5008 crore (YoY).

Its Research & Development (R&D) spend  for FY20 was at Rs. 958 crore, 4.1% of revenue.