Aurobindo gets healthier

Aurobindo Pharma is doing very well today morning on the back of its stellar Q3FY14 performance, posting its highest ever quarterly profit numbers. It closed yesterday at Rs.493.35 and opened at a new 52-week high at Rs.515, up almost 5% on opening trade itself.

The company reported a jaw dropping 355% (YoY) jump in consolidated net profit at Rs.417 crore on a 38% rise in net revenue. The market is enthused by the major improvement in margins – gross margins expanded 840 bps at 58% and EBITDA margin almost doubled up from 16.5% to 30.1%. Better sales margins and a much improvised product mix is what helped the company achieve this superlative performance. One should also take into account the lower base effect which is also partly responsible for spiking up the numbers. Its exports rose 40% while Indian business rose 18%.