Aurobindo Pharma

This Hyderabad based pharma company has reported strong performance for the second quarter with 82% YoY rise in formulations sales, which account for 76% of its turnover.  Q2 consolidated income surged 50% YoY to Rs. 2,881 crore, while operating profit jumped 45% to Rs. 637 crore, as the US generics business performed well due to company’s focus on complex molecules and differentiated technology platforms. On a sequential basis, revenue remained flat (Rs. 2,911 crore in Q1FY15) while net profit declined 10% to Rs. 372 crore from Rs. 415 crore in Q1 mainly in account of forex loss of Rs. 42 crore in the quarter gone by. Exports form a significant 87% of revenues. For this one-off, the performance was in-line.

EPS for H1FY15 stands at Rs. 27 (Q2 EPS of Rs. 12.76), while that for FY14 stood at Rs. 40. Thus, company is clocking close to 34% growth in bottomline in the current fiscal. With current market cap of little over Rs. 32,000 crore, the share is trading at PE multiple of close to 20 times on the annualized EPS of Rs.54 for FY15.