Aurobindo Pharma Limited — Q1 FY24
Aurobindo Pharma delivered a robust Q1 FY24 with revenue of INR 6,850 crore (+9.9% YoY) and EBITDA of INR 1,151 crore (+19.3% YoY), driven by strong US formulation growth (+11.2...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
79%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
High priority
Clarify margin outlook: 18% by Q2 and 20%+ for full year?
Asked by Damayanti Kerai, HSBC
CFO directly corrected the analyst's interpretation and gave clear margin guidance excluding Revlimid.
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Question
Subra, sir, clarity on margin outlook. You said by Q2, we should be crossing 18% margin, and for full year, it should be ahead of 20%, right?
Santhanam Subramanian, CFO
No, I never said. For the year is 18% plus special product. I made it very clear. Excluding that, I will be targeting around 18% for the year.
Evasive
Medium priority
What is changing in Eugia vertical restructuring?
Asked by Damayanti Kerai, HSBC
CFO acknowledged the plan but gave no concrete details on changes or timeline.
no specifics on structuredeferred to future
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Question
Sir, you talked about Eugia vertical restructuring. Can you talk bit of more, like, what is going to change and how, how we should look at that vertical?
Santhanam Subramanian, CFO
We are now planning to start the process. How it will take a shape, we'll come to know maybe in the next one or two months. The decision has been taken only day before, I mean, on 12th of August only, we'll come to know it clearly in the next two, three months.
Answered
High priority
Why did US oral solid growth not reflect in gross margins? Impact of Puerto Rico shutdown?
Asked by Neha Manpuria, Bank of America
CFO explained gross margin decline due to export benefits timing and quantified Puerto Rico impact.
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Question
We have done very well quarter-on-quarter, particularly, on the oral solid business, but that does not seem to reflect in our Gross Margins. I mean, Gross Margins were still pretty okay, you know, quarter-on-quarter. Was there any one-off in the US business? Also, what would be the impact of the Puerto Rico shutdown?
Santhanam Subramanian, CFO
The 0.6% drop is attributed to the drop in the export benefits. It's a timing issue. Puerto Rico, practically we are having a zero EBITDA, with a shutdown and restructure. We are likely to see a EBITDA margin improving by 0.5%.
Answered
Medium priority
What is the quarterly sales contribution of Puerto Rico to US business?
Asked by Neha Manpuria, Bank of America
CFO provided both percentage and absolute annual sales figure for Puerto Rico.
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Question
Puerto Rico, what was the sales contribution to the US business? Was it, you know, $20 million-$25 million?
Santhanam Subramanian, CFO
Typically, they contribute around, in and around 15%-20%, anywhere between 15%-20%. Last year as a whole, if I recollect, our contribution for the last year was around $52 million.
Partial answer
High priority
What is the outlook for US base business and pricing erosion? Also Revlimid opportunity.
Asked by Shyam
Swami gave qualitative comments but no specific revenue or pricing erosion numbers; Revlimid deferred.
no quantitative outlookdeferred Revlimid to Yugandhar
Read the exchange
Question
Just first one on the US run rate quarterly, so we have reached $400 million. Just want to understand how the base business performance will likely continue. Also, in terms of whatever you can share on Revlimid.
Swami Iyer, CEO Aurobindo Pharma USA
We had a volume-led strategy in the US, and we have delivered strong underlying growth. I would say the prices are stable now. We have seen continuation of that.
Answered
Medium priority
What is the non-US global Eugia growth quarter-on-quarter and drivers?
Asked by Shyam
Yugandhar provided sequential growth from $100-110M to $122M and gave a target.
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Question
Yugandhar, my question was the non-US global Eugia. How has that grown QOQ? That was the question, and what is driving it?
Yugandhar Puvvala, CEO Aurobindo Pharma
It's basically like, we used to be in the midst of around $100 million-$110 million for last few quarters. That has gone up to $122 million now. Our endeavor is to grow that business to $130+ million, starting from next quarter.
Answered
High priority
Is the $500M Eugia guidance excluding Revlimid? What happened to $650-700M guidance?
Asked by Kunal Dhamesha, Macquarie Group
Yugandhar clearly stated the old guidance is withdrawn and explained the new framework.
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Question
We had this guidance of $650 million-$700 million, and we are saying $500 million for this year. Are we still sticking to $650 million-$700 million?
Yugandhar Puvvala, CEO Aurobindo Pharma
I stopped giving that guidance that was given 2 years back. We will treat these as two different things. One is how do we grow the base business. That is the 500, how we can go to 550 and on, plus Revlimid.
Partial answer
High priority
Is the 18% EBITDA margin guidance based on flat pricing assumption?
Asked by Kunal Dhamesha, Macquarie Group
CFO broke down margin components but did not explicitly confirm pricing assumption in guidance.
did not confirm pricing assumptiongave components but not explicit guidance
Read the exchange
Question
I think you have said the price erosion has been trade off or pricing has been flat. Would that be the same assumption you would be making when you'll be giving the 18% EBITDA margin guidance for the full year?
Santhanam Subramanian, CFO
As on date, it is 16.8%. With the export benefits coming back, which will add to another 0.5%. Puerto Rico will add another 0.5%. If you really see the adjusted EBITDA, it's already 17.8%.
Partial answer
Medium priority
Is the strong injectable quarter sustainable? What is driving it?
Asked by Surya Patra, PhillipCapital
Yugandhar gave qualitative outlook but no specific growth rate or product details.
no quantitative growth rateno specific product drivers
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Question
This quarter is the strongest quarter so far. Is it fair to believe that the ramp-up subsequently will lead to a meaningful double-digit growth for the injectable business? What is driving this?
Yugandhar Puvvala, CEO Aurobindo Pharma
It's a decent start for the year, we expect that it will ramp up further. It has nothing to do with the current shortages. It is a general growth in volumes and H2 launches.
Answered
Medium priority
What is the margin level for European business now?
Asked by Surya Patra, PhillipCapital
Sanjeev provided a specific margin range (mid-teens) for Europe.
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Question
With the improved European performance this quarter, the best ever quarter, could you give some sense, what is the kind of overall margin that we should be tracking here?
Sanjeev Dani, COO and Head Formulations
We have reached mid-teens in EBITDA % to net sales.
Answered
Medium priority
When will generic Opsumit and Myrbetriq be launched?
Asked by Bino Pathiparampil, Elara Capital
Satakarni clearly stated launches are not expected in the near term.
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Question
One is generic Opsumit and another generic Myrbetriq. Are these products likely to be launched this financial or next financial year?
Satakarni Makkapati, CEO Biosimilars, Vaccines and Peptide Businesses
Opsumit, it's a tentative approval, under settlement. The launch would take some time. Next financial year? No, we don't believe so. It could be sometime later. Mirabegron also will have a subsequent launch.
Answered
Medium priority
What is Eugia's volume share in US injectables and how has it moved?
Asked by Tarang Agrawal, Old Bridge Asset Management
Yugandhar provided volume growth rate and ranking improvement.
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Question
On Eugia, sir, could you give us a sense on what your volume share in that business is in the US, and how has that moved, maybe over last year or over the previous quarter?
Yugandhar Puvvala, CEO Aurobindo Pharma
We are growing by around 10% volume. We have reached in US, in the injectable segment, to the 6th position. We used to be around nine, then we reached seven, now we are, as per latest figures, we reached 6th.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA margin target 18% excluding Revlimid for the year | 18% | 16.8% | Overstated vs filing |
| Puerto Rico annual sales $52 million last year | 52 | 6,850 | Understated vs filing |
| Eugia global sales $122 million this quarter | 122 | 6,850 | Understated vs filing |
| Eugia US sales $90 million this quarter | 90 | 6,850 | Understated vs filing |
| Eugia target $500 million for the year excluding Revlimid | 500 | 6,850 | Understated vs filing |
| Eugia pro forma sales $411 million last year | 411 | 6,850 | Understated vs filing |
| Current EBITDA margin 16.8% | 16.8% | 16.8% | Matches filing |
| Adjusted EBITDA margin 17.8% | 17.8% | 16.8% | Overstated vs filing |
| Europe injectable sales EUR 18-20 million per quarter | 19 | 6,850 | Understated vs filing |
| Europe EBITDA margin mid-teens | 15% | 16.8% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.