Aurobindo Pharma Limited — Q4 FY24
Aurobindo Pharma delivered a strong Q4 FY24 with revenue of INR 7,850 crore (+17% YoY) and EBITDA of INR 1,687 crore (+68% YoY), driven by volume gains, new product launches, st...
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
Declined
High priority
Growth outlook for FY25 and de-risking plan for Eugia 3 OAI
Asked by Kunal Ramesh
Management explicitly declined to provide a growth outlook range.
refused to give rangedeferred to business leaders
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Question
Just, you know, the first question on the growth outlook for the FY 25. While we have said that we'll continue to grow, would you be able to give any range, you know, for the outlook for FY 25?
Operator
We are not giving any growth outlook overall as a company, but, our respective business leaders will talk about it when they are addressing their businesses.
Partial answer
High priority
Plan to de-risk growth due to Eugia 3 OAI and 29 pending ANDAs
Asked by Kunal Ramesh
Answered the de-risking plan but did not quantify how many ANDAs will be saved or timeline.
no timeline for Vizag approvalsno quantification of de-risking impact
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Question
given that now Eugia three is classified as an OAI and, there are 29 pending ANDAs, what is our plan to de-risk our growth for the next couple of years till we are able to resolve this official action indicator?
Yugandhar Puvvala, CEO, Eugia Pharma Specialties Limited
we have built the Vizag plant as a backup for de-risking plant for Unit 3. Now, Vizag plant audit is completed, and hopefully we should get our first approval sometime very soon.
Answered
High priority
How many filings from Unit III will get stuck due to OAI?
Asked by Kunal Ramesh
Provided a specific number (20+) and a timeline estimate.
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Question
Sir, you know, how many filings, because of this OAI for, let's say, next 2 years, will get stuck from Unit III out of this 29?
Yugandhar Puvvala, CEO, Eugia Pharma Specialties Limited
It's around 20 plus, will stuck. But what we are working, Kunal, is in terms of... we have taken all proactive actions... I expect at least 1 year getting impacted, but hopefully the second year we should come back.
Answered
High priority
Update on biologic CMO LOI with MSD and CapEx status
Asked by Kunal Ramesh
Provided a clear timeline and status update on the LOI and CapEx.
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Question
on the biologic CMO, LOI that we have signed with MSD. Any update, on that, you know, LOI to contract signing as of now? And, and, and in terms of whatever CapEx that we are putting, capacities, et cetera, are we through, in terms of basic infra?
Satakarni Makkapati, CEO, Aurobindo Pharma Ltd
I have updated the exchanges that I would attempt to close the definitive agreement by 31st of May. Now, I think we are truly on track to closing the definitive agreement with MSD, Singapore entity by 31st of May, so I don't see any showstoppers there.
Answered
Medium priority
Have any ANDAs from Eugia 3 been filed from Vizag?
Asked by Damayanti Kerai
Clearly stated that no existing filings are being transferred; only new filings will go to Vizag.
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Question
out of the 29 ANDAs which are pending from the Eugia 3 plant, have you filed it, filed any products from Vizag, so far, or this process will start now?
Yugandhar Puvvala, CEO, Eugia Pharma Specialties Limited
In all the new filings and some of the site transfer projects is what we are planning to do it in Vizag, but none of the existing filings, we have no plans of transferring the existing filings of Eugia 3 to Vizag, okay?
Answered
High priority
Timeline for remediation of Eugia 3 and sales impact
Asked by Damayanti Kerai
Provided a specific timeline (3-4 more months) and next steps.
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Question
in terms of remediation, what kind of timeline you are anticipating? ... what will be approximate timeline, anticipated by your team, within which you can, resolve the FDA queries satisfactorily?
Yugandhar Puvvala, CEO, Eugia Pharma Specialties Limited
We are already into the fourth month of remediation... We expect probably like it'll go on for another 3-4 months. Post that, as and when the management feels confident that we have addressed all the concerns raised by the auditors, we will approach the FDA again.
Answered
High priority
Is FY25 a year of muted growth for injectables?
Asked by Neha Manpuria
Confirmed muted growth and gave a qualitative expectation (double-digit but lower than prior year).
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Question
Is it fair to assume that this will be a year of very little growth outside of, you know, generic Revlimid for the injectable business?
Satakarni Makkapati, CEO, Aurobindo Pharma Ltd
You are right, Neha. In fact, it'll be a year of, muted growth. So we do expect a double-digit growth, but definitely not the way like we have grown from FY 2023 to FY 2024...
Answered
Medium priority
What additional remediation does FDA expect for Eugia 3?
Asked by Neha Manpuria
Clearly stated that FDA did not specify additional requirements; remediation is voluntary.
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Question
in your view, what additionally does the FDA expect, you know, Aurobindo, Eugia to do on that facility, you know, for which you think it'll take another three, four months?
Satakarni Makkapati, CEO, Aurobindo Pharma Ltd
No, in fact, the FDA never said anything, okay. ... This is all absolutely voluntary. FDA never advised us what to be done, because when we received the letter away- It said, didn't say anything.
Partial answer
Medium priority
Pen-G utilization level and price impact
Asked by Surya Patra
Provided price and batch status but did not give utilization targets or yield details.
no utilization rate givenyield not addressed
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Question
What are the kind of operation or utilization level that we have, it's raised, or what are the kind of utilization that we are targeting in the, you know, for the current year? And have you really commercialized the things, and have you seen any kind of price impact in the market for Pen-G?
Santhanam Subramanian, CFO, Aurobindo Pharma Ltd
price of Pen G is hovering around $25 per kg. ... In terms of the entire Pen-G business, we have taken a test batch in the month of March and come out well... Hopefully from June first week onwards... We'll be doing a little bit expanding the number of batches...
Answered
High priority
Preparedness for Ryzneuta launch in US and its importance
Asked by Surya Patra
Provided launch timing and a conservative view on value.
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Question
Our preparedness about the launch of Ryzneuta in the US, you have already indicated that that launch is likely to happen in the second half of the current financial year. So how important this launch could be for us and, how important it could be as a trigger?
Venugopalan Muralidharan, President Europe Formulations Business, Aurobindo Pharma Ltd
We expect to launch it in the second half of the current calendar year, that is sometime in July. ... we don't believe that the volume or the pricing is going to be so high. We are somewhat not so optimistic... regarding the value.
Partial answer
Medium priority
Total spend on biosimilar portfolio and margin impact
Asked by Surya Patra
Provided spend numbers but did not quantify margin impact; deferred to another executive.
margin impact not quantifieddeferred to Satakarni
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Question
what are the kind of money that we have spent towards this biosimilar portfolio creation and all that, sir? And whether this cost is currently capitalized and or it is expensed currently. And once you start commercializing the product, what is the likelihood that it will have some impact on the overall margins of the company?
Venugopalan Muralidharan, President Europe Formulations Business, Aurobindo Pharma Ltd
We have spent around $340 million so far, and only we have capitalized around $75 million. Balance has been charged to PNL, right?
Answered
High priority
Gross margin sustainability and EBITDA margin guidance
Asked by Shyam Srinivasan
Explained drivers of margin improvement and reiterated EBITDA margin guidance.
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Question
on the gross margins. Subbu Sir, I think, has reached almost, if I round up, 60%. So just want to get the sense of what is sustainable, which are the cyclical elements in it, which will probably go away... And when we do the 21-22 guidance from EBITDA margins, you know, what are the things that could be below the gross margin lines that could be growing faster?
Santhanam Subramanian, CFO, Aurobindo Pharma Ltd
Last year, we did around 20.1%. So against that, when you are saying 21%-22%, one is the overall gross margin has improved considerably by about 2%-3%... the raw material prices have come down considerably... U.S. business is doing well... pricing environment is stable.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Eugia global revenue run rate of $150 million per year | 150 | 7,580 | Understated vs filing |
| US injectable revenue range of $100-$110 million | 105 | 7,580 | Understated vs filing |
| EBITDA margin target of 21%-22% | 21.5% | 22% | Matches filing |
| Other growth markets aiming for $300 million annually | 300 | 7,580 | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.