Aurobindo Pharma Limited — Q3 FY24
Aurobindo Pharma reported Q3 FY24 revenue of INR 7,352 crore (+14.7% YoY) and EBITDA margin of 21.8%, driven by strong US formulation growth (+28.9% YoY) and injectable/specialt...
bullish
medium
✓ 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.
71%Questions answered2Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Clarify timeline and impact of Eugia Unit III shutdown
Asked by Kunal Dhamesha, Macquarie Capital
Management gave specific timelines and quantified the revenue impact.
Read the exchange
Question
So the first one on the plant inspection, the Eugia Unit III plant inspection... if you could provide some color as to how many lines are aseptic and non-aseptic, and also qualitatively, if you can direct at the contribution to revenue, et cetera, would be helpful.
Yugandhar Puvvala, CEO of Eugia Pharma Specialties
In fact, the non-aseptic lines will start off sometime in next few weeks, and aseptic lines will take a month or two, and we expect, the entire production to get streamlined by end of this financial year. We expect that because of the stoppage, it can have an impact of around $20 million in Q4 of this financial year.
Evasive
High priority
Levers for EBITDA margin improvement beyond Pen G
Asked by Kunal Dhamesha, Macquarie Capital
Management acknowledged the question but refused to provide details, deferring to next quarter.
deferred to next quarterno specifics given
Read the exchange
Question
Beyond that, what other levers do you see for the next year, for the EBITDA margin improvement on a year-on-year basis?
Santhanam Subramanian, CFO
See, at this stage, Kunal, we are talking about achieving 20% for the year. Already we are 19.4%, and by end of this with this quarter, we will touch upon 20%, that we are confident. Apart from Penicillin G, at this stage, we are not saying anything at this stage. Probably next quarter we will be able to talk about it.
Partial answer
High priority
Revenue concentration and top products from Eugia Unit III
Asked by Kunal Dhamesha, Macquarie Capital
Management gave the plant's revenue contribution but did not list top products as asked.
no product-level breakdown given
Read the exchange
Question
Do we have a lot of earnings concentration coming out of this plant... If yes, can you guide us to top five products from the plant, what could be the earning, revenue contribution?
Yugandhar Puvvala, CEO of Eugia Pharma Specialties
See, in general, this particular plant is important to us... But for Eugia business, this plant contributes around 40% of revenue. And I, in fact, there are multiple products where we are market leaders in the U.S., and that's where, like, we are focusing in terms of how fast we can resolve and restart manufacturing.
Partial answer
High priority
Confidence in recovering revenue loss and market share after shutdown
Asked by Neha Manpuria, Bank of America
Management explained the nature of issues but did not directly answer the confidence level of recovering revenue or market share.
did not directly address market share recovery confidence
Read the exchange
Question
Now, when we shut down the facility for an extended period of time, and the revenue loss that you're mentioning, what is the confidence of recovering, you know, the $20-odd million numbers, particularly since we are not going to see new approvals till the time we clear this facility also?
Yugandhar Puvvala, CEO of Eugia Pharma Specialties
In fact, this, Neha, thanks for asking this question, because, see, the bag line issues might be different from the current observations. What we feel is the current observations are more to do with aseptic processing practices, some documentation gaps. And so we are confident that we are working with the most reputed consultants to ensure that we put the strongest response possible and also resolve the issues.
Answered
High priority
Source of Eugia growth in FY25-26 beyond Revlimid
Asked by Neha Manpuria, Bank of America
Management provided a specific revenue expectation from new products and explained the plant distribution.
Read the exchange
Question
So where is our FY 2025, 2026 growth going to come from for the Eugia business, other than Revlimid, of course? From an injectable pipeline, where would that growth come from?
Yugandhar Puvvala, CEO of Eugia Pharma Specialties
No, what we feel is, that... Yeah, you said it right. It's mainly going to come from the Revlimid, but we were expecting around $30 million-$40 million of new products revenue coming from balance of the plants, because, as you know, we have total five plants...
Answered
Medium priority
Reason for low cash flow despite high EBITDA
Asked by Shyam Srinivasan, Goldman Sachs
Management explained the specific reason for the cash flow drop with a quantified amount.
Read the exchange
Question
So we had about INR 1,600 crores of EBITDA, but when I look at the slide 14, cash flow from business after working capital and others, it's about $45 million. So is there an adverse conversion cycle this quarter?
Santhanam Subramanian, CFO
Yeah, Shyam, this quarter we have made some of the creditor payments have been due across the group, and we have nearly paid nearly around $75 million in terms of increased creditor over and above the gross current assets.
Answered
High priority
Update on biosimilar pipeline and CMO with MSD
Asked by Shyam Srinivasan, Goldman Sachs
Management provided a comprehensive update on biosimilar pipeline and MSD CMO agreement.
Read the exchange
Question
My last question is just, I think there's a slide on the biosimilar. So Dr. Satakarni, if you could kind of walk us through the update, for that, on the biosimilar side. Thank you.
Satakarni Makkapati, CEO of Biosimilars, Vaccines and Peptide Businesses
Yes, Shyam, good morning. On the biosimilars. We have a approval for trastuzumab, which is our anti-HER2 breast cancer drug in India. We have a SEC recommendation for marketing authorization... With respect to the other programs, we have three filings done with European Medicines Agency, including trastuzumab.
Partial answer
High priority
Backup plan for Eugia Unit III products if shutdown extends
Asked by Damayanti Kerai, HSBC
Management identified Vizag as backup but did not provide concrete transfer plans or timelines.
no specific timeline for transferspeculative
Read the exchange
Question
Just want to understand, say, in case it takes longer, so, do you have any backup plans for shifting some of the key products to other facilities? And if yes, then which will be key facilities where you'll be transferring your product, apart from the new ones, which you said are filed from the Vizag unit?
Yugandhar Puvvala, CEO of Eugia Pharma Specialties
Damayanti, in fact, the Vizag is built as a backup to Eugia Unit III. So in case if that situation arises, we will try and transfer some of the key products to Vizag lab.
Declined
Medium priority
Profitability sensitivity of Pen G plant at different prices
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Management explicitly declined to provide sensitivity analysis, calling it speculation.
refused to speculatedeferred to later
Read the exchange
Question
Sir, first on this PLI scheme project, just would like to understand the pricing of Pen G, maybe pre-COVID, and what could be the profitability if the price goes below $20 per kg?
Muralidharan Venugopalan, President of Europe Formulation Business
Tushar, as I said, no, last quarter also, let us not speculate at this particular point of time. Our first objective is to complete the trial batches, start the business in the month of, in the first quarter.
Answered
Medium priority
New base for Europe business after clawback adjustment
Asked by Tarang Agrawal, Old Bridge Capital
Management confirmed the new base and provided the clawback amount.
Read the exchange
Question
If I were to adjust for the tax clawback, you're at about 206 million EUR. How should we look at this business going forward here? Is this 200 million EUR the new base for this business?
Muralidharan Venugopalan, President of Europe Formulation Business
Tarang's question was also whether are we going to clock this $200 million plus Q on Q. And, Tarang, yes, we will be doing that for sure. The, that is the objective and of course, the, in this quarter, because of the almost close to EUR 14 million clawback, it slightly impacted, our Q3 revenues.
Answered
High priority
Commercialization timeline and revenue potential of biosimilars
Asked by Nitin Agarwal, DAM Capital Advisors
Management gave a clear timeline and specific revenue guidance for a key product.
Read the exchange
Question
How should we see the commercialization part of the biosimilar business over the next three to four years? And what kind of salience can this business really have in the overall scheme of things?
Satakarni Makkapati, CEO of Biosimilars, Vaccines and Peptide Businesses
I see 2026 as an inflection point for this business... With Xolair, I expect by 2028 we would be around $120 million-$180 million, provided we will be able to get approvals both in U.S. and Europe, and another $20 million from the rest of the world.
Answered
Medium priority
Number of injectable approvals from Eugia Unit III
Asked by Jigar Valia, OHM Stock Broker
Management clearly stated that most approvals are from Eugia III, except one.
Read the exchange
Question
For the product approvals, seven we have received from the injectable side, how many would be from Eugia Unit III?
Yugandhar Puvvala, CEO of Eugia Pharma Specialties
Most of it is from Eugia III, and except one product, most of it is from Eugia III.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA margin guidance of 20% for FY24, currently 19.4% | 20% | 21.8% | Understated vs filing |
| Eugia Q3 revenue of $150 million | 150 | 7,352 | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.