The share price of Aurobindo Pharma surged more than 5 percent on Thursday after the company reported a robust set of March-quarter earnings. The stock hit its 52-week high, gaining as much as 5.41 percent to Rs 791 per share.

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However, the shares pared gains, trading only 1 percent higher at Rs 757 at 11:58 am on the NSE.

The company's consolidated net profit rallied 45.2 percent year-on-year (YoY) to Rs 849.8 crore for the quarter ended March 31, 2020 against Rs 585.4 crore for the same quarter last year.

Meanwhile, the consolidated net revenue grew by 16.4 percent YoY to Rs 6,158.4 crore during the quarter as against Rs 5,292.2 crore last year.

EBIDTA before forex and other income came in at Rs 1,342.4 crore v/s Rs 1,060.3 crore last year, up by 26.6 percent while EBITDA margin for the quarter was at 21.8 percent.

The revenue from formulations surged 23.5 percent to Rs 5,401.2 crore while API (active pharmaceutical ingredients) segment posted a sale of Rs 755.6 crore, which contributed 12.3 percent to the consolidated revenue of the company.

In FY19-20, the company received final approvals for 22 ANDAs and tentative approval for 4 ANDA from US FDA.

"We have closed FY20 with a healthy performance in Q4. The growth was seen across all our geographies. Diversified product basket has helped us to maintain the growth momentum in our core geographies like USA and Europe. We remain focused on strengthening our existing businesses, developing a differentiated & specialty product basket and regulatory compliance.”," said N Govindarajan, managing director of the company.

Among brokerages, Credit Suisse maintained its 'neutral' call on the stock with a target at Rs 665 per share. A sharp increase in expenses offset the benefit from the gross margin, it said.

It also believes that the injectables sales remained quite weak in the US, down 23 percent QoQ which is not a good sign. However, it feels that the R&D should increase in FY21.

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First Published:Jun 4, 2020 12:08 PM IST