Aurobindo Pharma Shares Crash 7%, Hit 52-Week Low After Profit Declines In Q2

Shares of Aurobindo Pharma on Monday fell nearly 7 per cent to hit fresh 52-week low of Rs 457 on the BSE after the company reported a 41 per cent decline in its consolidated net profit for the second quarter ended September 30, 2022.

The company's shares plunged 6.52 per cent to its 52-week low of Rs 457.20 on the BSE after a weak beginning.

At the NSE, it declined 6.60 per cent to its 52-week low of Rs 457.

Later, it recovered most of the early lost ground and traded nearly 2 per cent lower.

Aurobindo Pharma on Saturday reported a 41 per cent decline in its consolidated net profit at Rs 409 crore for the second quarter ended September 30, 2022.

The Hyderabad-based drug firm had posted a net profit of Rs 697 crore in the July-September period of last fiscal.

Revenue from operations also declined to Rs 5,739 crore in the September quarter as against Rs 5,942 crore in the year-ago period.

Aurobindo Pharma Vice-Chairman and Managing Director K Nithyananda Reddy said the company's second quarter performance was subdued, mainly due to macro-environment factors and higher competitive intensity for some products in the US.

"However, we are confident that our robust pipeline of new products will provide impetus to the future growth trajectory," he added.  

Last week, the Enforcement Directorate arrested company's director P Sarath Reddy in connection with Delhi liquor policy case.

The ED arrested two company executives linked to liquor trade in the money laundering investigation being conducted by it into the now scrapped Delhi Excise policy case, official sources told news agency Press Trust of India.

Benoy Babu of Pernod Ricard and P Sarath Chandra Reddy of Aurobindo Pharma were arrested under sections of the Prevention of Money Laundering Act (PMLA), they said.

The Enforcement Directorate (ED) has conducted multiple raids in this case so far.

As of 11:46 am, Aurobindo Pharma shares were down 2.18 per cent at Rs 478, underperforming the Sensex which was down 0.2 per cent.

(With PTI inputs)