BENGALURU (Reuters) – India’s Aurobindo Pharma Ltd reported third-quarter profit that missed analysts’ estimates on Thursday, as higher input costs offset strong sales in its key United States market.
Net profit for the three months ended Dec. 31 fell to 4.91 billion rupees ($59.52 million) from 6.05 billion rupees a year earlier, the company said in a stock exchange filing.
Analysts, on average, had expected the company to report a profit of 5.21 billion rupees, according to Refinitiv IBES data.
Consolidated input costs surged 43% for the company, which makes anti-anxiety drug Alprazolam and antibiotic Amoxicillin, while consolidated net sales rose only 6.7% to 63.88 billion rupees.
The company derives about 90% of its revenue from exports, with U.S. and Europe being two of its major markets. Revenue from its U.S. segment came in at 30 billion rupees, an increase of 9.3%, while revenue from Europe rose a modest 0.4%
From its growth markets, which includes the domestic region, revenue jumped 25.7%.
Shares of the Hyderabad-based firm closed 0.9% lower to 440.95 rupees ahead of the results, snapping three sessions of gains. Aurobindo Pharma had declined 40.3% last year, underperforming the Nifty pharma index which fell 11.4%.
Rivals Sun Pharmaceutical Industries Ltd and Dr Reddy’s Laboratories Ltd beat third-quarter profit estimates, while Cipla Ltd missed analysts’ forecast.
($1 = 82.5000 Indian rupees)
(Reporting by Rama Venkat in Bengaluru; Editing by Janane Venkatraman)