Aurobindo Pharma shares fell as much as 7 percent on May 22 after the Hyderabad-based drugmaker reported margin pressure in its March quarter results, overshadowing modest profit growth.
Consolidated profit after tax rose 2 percent to 920.84 crore rupees, while revenue from operations climbed 5.6 percent to 8,853.34 crore rupees. EBITDA grew just 0.5 percent to about 1,801 crore rupees, and the EBITDA margin contracted by roughly 103 basis points to 20.3 percent from 21.4 percent a year earlier.
Weakness in the United States formulations business weighed on results, with U.S. revenue falling about 13 percent to 3,543 crore rupees. Europe formulations revenue rose 30.2 percent to 2,795 crore rupees, partially offsetting the drag.
Management said it expects EBITDA margins to recover above 21 percent in fiscal 2027 through operating leverage and cost optimization. The stock opened lower at 1,520 rupees and touched an intraday low near 1,449 rupees as investors focused on operating performance rather than the slight profit increase.
Vice-Chairman K. Nithyananda Reddy said consistent volumes and improved operating efficiencies contributed to results despite regional mix challenges. Growth markets revenue increased 24.7 percent to 980 crore rupees. The stock had gained about 24 percent year-to-date before the results-driven selloff.
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Sources:
https://www.business-standard.com/amp/markets/news/stock-market-live-may-22-nse-bse-sensex-today-nifty-gift-nifty-us-iran-conflict-q4-results-share-market-today-126052200096_1.html