Aurobindo Pharma announces buyback worth ₹750 crore at ₹1,460 per share, stock down nearly 2%

A buyback pertains to a company purchasing its own shares from the market which reduces the outstanding number of shares. It is an indirect method of rewarding shareholders. Aurobindo Pharma has decided to buyback its shares at a price of ₹1,460 per equity share. Currently, the stock is trending near the ₹1,345 mark.

During the fourth quarter of fiscal year 2024, revenue from operations increased by 17.1% year-over-year (YoY) to ₹7,580 crore led by growth across its businesses. Earnings before interest, tax, depreciation, and amortisation (EBITDA) before forex and other income rose 68.3% YoY to ₹1,687 crore during the quarter. EBITDA margin improved by 677 basis points (bps) 22.3% in the period.

Net profit after share of joint venture and minority interest rose 79.6% YoY to ₹909 crore. Aurobindo pointed out that US formulations (excluding Puerto Rico) revenue increased by 21.6% YoY to ₹3,588 crore ($432 million) while Europe formulation revenue rose by 10.4% YoY to ₹1,832 crore (€203 million).

For the full fiscal year 2024, revenue from operations rose 16.7% to ₹29,002 crore while EBITDA before forex and other income jumped 55.5% to ₹5,843 crore. EBITDA margin for the year improved 503 bps to 20.1%. Net profit after share of joint venture and minority interest jumped 64.6% YoY to ₹3,173 crore.

K Nithyananda Reddy, vice-chairman and managing director of the company said the strong performance for the quarter and the year was supported by the expansion into new markets, product launches and stable pricing. “Our improved capacity utilization has led to higher operating efficiencies. We are confident of continuing our growth in the upcoming year, while stabilising the operations of the recently commercialised facilities,” he said.

Shares of the company have gained over 24% since the beginning of the year. The stock has risen over 78% in the last one year.