Earnings Alerts

Aurobindo Pharma (ARBP) Earnings: 1Q Net Income Misses Estimates Despite Revenue Growth

  • Net income: 9.19 billion rupees, up 61% year-over-year, but below the estimate of 9.41 billion rupees.
  • Revenue: 75.67 billion rupees, up 10% year-over-year, slightly below the estimate of 75.8 billion rupees.
  • Active pharmaceutical ingredients sales: 10.92 billion rupees, up 6% year-over-year, below the estimate of 11.56 billion rupees.
  • Europe sales: 19.82 billion rupees, up 7.7% year-over-year, beating the estimate of 19.01 billion rupees.
  • US revenue: 35.55 billion rupees, up 13% year-over-year, above the estimate of 34.9 billion rupees.
  • Rest of the world revenue: 7.70 billion rupees, significantly higher than the estimate of 5.24 billion rupees.
  • Total costs: 64.6 billion rupees, up 6.3% year-over-year.
  • Employee benefits expenses: 10.72 billion rupees, up 13% year-over-year, higher than the estimate of 10.37 billion rupees.
  • Finance cost: 1.11 billion rupees, up 96% year-over-year, higher than the estimate of 704.2 million rupees.
  • Other income: 2.21 billion rupees, up 91% year-over-year.
  • EBITDA: 16.2 billion rupees, up 41% year-over-year, close to the estimate of 16.17 billion rupees.
  • EBITDA margin: 21.4% compared to 16.8% year-over-year, exceeding the estimate of 18.9%.
  • R&D expenses: 3.39 billion rupees.
  • Analyst ratings: 22 buys, 4 holds, 3 sells.

A look at Aurobindo Pharma Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth2
Resilience4
Momentum4
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Aurobindo Pharma Limited, a company known for manufacturing and marketing a wide range of generic drugs, is positioned with a mixed outlook according to Smartkarma Smart Scores. With a Value score of 3 and a Dividend score of 3, the company shows stability in terms of its financial performance and dividend distribution. However, with a Growth score of 2, the company might face challenges in expanding its operations and market share in the future. On the positive side, Aurobindo Pharma scores well in Resilience with a score of 4, indicating its ability to withstand economic uncertainties, and in Momentum with a score of 4, suggesting a strong performance trend in the market.

Overall, Aurobindo Pharma‘s future prospects seem to be steady, with a focus on maintaining value and dividends, supported by its resilient nature and positive market momentum. The company’s product range includes a variety of essential drugs such as antibiotics and anti-ulcerants, which ensures a stable foundation for its business operations. While growth opportunities may be a bit constrained, Aurobindo Pharma‘s strong resilience and market momentum are expected to keep it on a steady course in the pharmaceutical industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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