Aurobindo Pharma closed lower after Telangana facility classified as Voluntary Action Indicated by US FDA.

Following the inspection, the unit received an Establishment Inspection Report which classified the unit as Voluntary Action Indicated (VAI). The FDA classifies a VAI as an inspection finding through which objectionable conditions or practices were found, but the agency is not prepared to take or recommend any administrative or regulatory action.

The financial impact of the action is not clear and it is not known what percentage of Aurobindo’s revenues accrue from the unit.

Shares of Aurobindo Pharma closed lower by 0.25% on Thursday.

In the fourth quarter of the financial year 2024, Aurobindo Pharma’s net profit surged 79.6% year-on-year (YoY) to ₹909 crore. The company’s consolidated revenue from operations during the quarter grew 17.1% YoY to ₹7,580 crore. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter were up 68.3% YoY to ₹1,687 crore while the EBITDA margin expanded by 677 basis points (bps) to 22.3%.

For the financial year ended March 31, 2024, Aurobindo Pharma’s net profit was 64.6% YoY higher at ₹3,173 crore. The consolidated revenue for FY24 came in higher by 16.7% YoY to ₹29,002 crore. The company’s EBITDA was up 55.5% YoY to ₹5,843 crore while the EBITDA margin expanded by 503 bps YoY to 20.1%.

The company’s earnings per share in FY24 was up 64.6% YoY to ₹54.16.

In FY24, 89% of the revenue came from the company’s international business while 11% was generated domestically. Out of the international markets, the United States was the highest contributor at 47.8%. Europe was the second largest contributor at 24.7% while Puerto Rico contributed 1.2%. The API segment made up 14.6% of the revenue and ARV contributed to 3%. Revenue from growth markets stood at 8.7% of the total revenue.

Shares of the company have risen by nearly 11% since the beginning of the year. The stock has gained over 66% in the last one year