9 November 2015
2QFY16 Results Update | Sector:
Healthcare
BSE SENSEX
26,121
Bloomberg
Equity Shares (m)
M.Cap. (INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, (INR m)
Free float (%)
S&P CNX
7,915
ARBP IN
584.0
499.9/7.5
861/ 491
12/32/72
1,679
46.1
CMP: INR856
TP: INR1,050 (22% upside)
Aurobindo Pharma
Buy
Financials & Valuation (INR Billion)
Y/E MAR
Sales
EBITDA
NP
EPS (Rs)
EPS Gr. (%)
BV/Sh. (INR)
RoE (%)
RoCE (%)
P/E (x)
P/BV (x)
2015 2016E 2017E
121.2 142.8
25.6
16.2
27.7
21.7
36.4
28.2
30.8
9.7
32.7
21.1
36.2
30.4
34.5
29.7
23.6
7.0
169.0
40.6
27.7
47.4
31.2
166.3
33.0
31.0
18.0
5.1
88.3 121.4
Estimate change
TP change
Rating change
ARBP’s 2QFY16 adj. PAT of INR4.9b (up 23% YoY) was in line with our estimates,
primarily driven by higher US and ARV sales. EBITDA at INR7.7b (up 22% YoY) beat
our expectations by 5% on improved margins (23.3% v/s 21.4% est). We believe
strong pace of approvals in the US and improving profitability of EU business is likely
to drive overall margins and earnings growth for the company.
Better business mix in 2Q:
The revenue growth at 16%YoY was in line with estimates,
driven by US and ARV formulations sales. Strong traction in Natrol franchise and
consistent product launches (~15-17) over last two quarters led to 26%YoY growth in
US business. ARV business reported 95%YoY growth on the back of higher
participation in new tender supplies (4
th
straight quarter with growth in excess of
30%). However, the acquired EU biz remained flat YoY, affected by steep currency
depreciation in 2Q. Overall, the company has given guidance of 13 product launches
in the US over next two quarters and is likely to maintain the strong growth
momentum going ahead. The company has 196 pending ANDA approvals that are
likely to unfold over next 3-4 years. It also includes niche products like Injectables,
Penems, peptides and controlled substances that are likely to drive top line growth
(36% CAGR) over FY15-18E.
EBITDA margins to expand over next 3 years:
EBITDA margin at 23.3% beat our
estimates by 115bp, as company saved cost in other expenses with improving
leverage. We expect EBITDA margin to increase to 25% in FY18E from 21% in FY15E,
as a) ARBP continues to launch niche products in the US, and (b) EU & ARV business
profitability improves.
Execution of injectable portfolio and improving profitability to lead to re-rating:
At
CMP, ARBP trades at 23.6x FY16E and 18.0x FY17E— at 15-20% discount to sector
average. Going ahead, valuation gap is expected get narrow on the back of increasing
profitability and strong free cash flows generation. As a result, we expect higher ROE
to sustain over FY16-18E. We maintain
Buy
rating on the stock with a target price of
INR1,050 (20x Sep’17E EPS).
In line result; US and ARV key growth drivers
Kumar Saurabh
(Kumar.Saurabh@MotilalOswal.com); +91 22 3982 5584
Amey Chalke
(Amey.Chalke@MotilalOswal.com); +91 22 3982 5423
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Aurobindo Pharma
2Q Result snapshot
Exhibit 1: Quarterly Snapshot (Revenue mix)
(INR m)
Formulations
ARV formulations
US generic formulations
EU & RoW formulations
APIs
Semisynthetic penicillins
Cephalosporins
ARV and others
Total revenues
2Q FY15
22365
1,389
11,743
9,233
6,850
2,152
2,348
2,350
29,215
1Q FY16
26371
2,953
14,295
9,123
7,230
2,165
2,614
2,451
33,601
2Q FY16
26,806
2,708
14,775
9,323
6,911
1,981
2,294
2,636
33,717
%YoY
19.9
95.0
25.8
1.0
0.9
(7.9)
(2.3)
12.2
15.4
%QoQ
1.6
(8.3)
3.4
2.2
(4.4)
(8.5)
(12.2)
7.5
0.3
FY15
95,586
9,639
48,317
37,630
27,062
8,640
9,300
9,122
122,648
FY16
115,131
11,567
65,395
38,170
28,988
8,640
9,858
10,490
%YoY
20.4
20.0
35.3
1.4
7.1
0.0
6.0
15.0
144,120
17.5
Source: Company, MOSL
Exhibit 2: Quarterly Profit and Loss statement
(INR m)
Gross sales
Excise duty
Total revenues
Raw material cost
Gross profit
Gross margin (%)
Staff cost
% of Total Revenues
Other expense
% of Total Revenues
EBITDA
EBITDA margin (%)
Depreciation
% of Total Revenues
EBIT
Interest cost
Other income (net)
Forex gain/(loss)
PBT
Income tax
Effective tax rate (%)
Minority interest
Net Profit - reported
Adjusted Net Profit
EPS (INR) - Adj
2Q FY15
29,215
403
28,812
12,647
16,165
56.1
3,370
11.7
6,424
22.3
6,372
22.1
899
3.1
5,473
210
-
147
-
420
5,117
1,404
27.4
(9.5)
3,722
4,017
6.9
1Q FY16
33,601
397
33,204
15,078
18,125
54.6
3,651
11.0
7,228
21.8
7,247
21.8
891
2.7
6,355
209
291
-
256
6,182
1,865
30.2
(7.5)
4,324
4,496
7.7
2Q FY16
33,717
382
33,335
14,690
18,645
55.9
3,759
11.3
7,129
21.4
7,756
23.3
928
2.8
6,828
241
117
-
579
6,125
1,622
26.5
(10.0)
4,513
4,929
8.4
%YoY
15.4
(5.2)
15.7
16.2
15.3
(17)bp
11.6
(42)bp
11.0
(91)bp
21.7
115 bp
3.2
(10.8)
24.8
14.8
(179.5)
37.8
19.7
15.5
(97)bp
5.3
21.3
22.7
22.7
%QoQ
0.3
(3.8)
0.4
(2.6)
2.9
134 bp
3.0
28 bp
(1.4)
(38)bp
7.0
144 bp
4.1
3.7
7.4
15.4
(59.8)
126.3
(0.9)
(13.0)
(369)bp
33.3
4.4
9.6
9.6
FY15
122,648
2,216
120,432
55,056
65,376
54.3
13,023
10.8
27,490
22.8
24,863
20.6
3,326
2.8
21,537
843
1,581
(596)
21,679
5,966
27.5
(45.1)
15,758
16,194
27.7
FY16
144,120
2,162
141,958
63,550
78,408
55.2
14,995
10.6
31,561
22.2
31,853
22.4
4,257
3.0
27,596
966
1,650
(835)
27,446
6,999
25.5
(48.0)
20,495
21,117
%YoY
17.5
(2.4)
17.9
15.4
19.9
95 bp
15.1
(25)bp
14.8
(59)bp
28.1
179 bp
28.0
8.6
28.1
14.6
4.4
40.1
26.6
17.3
(202)bp
6.4
30.1
30.4
36.2
30.4
Source: Company, MOSL
9 November 2015
2

Aurobindo Pharma
Exhibit 3: High sales growth, led by US and ARV form.
Total sales
41
22
15 16
30
16
17
41
% YoY growth
69
49
22
24
29
50
29
32
47
Exhibit 4: EU sales includes Actavis sales from 1QFY15
EU sales
% YoY growth
229
250
201
249
68
(2)
1
28
19
39
35
32
14
34 34
15
9
2 2
45 53
2
3
17
3
27 21
3
3
9
9
10
9
9
9
Source: Company, MOSL
Source: Company, MOSL
Exhibit 5: US sales continue to grow over a high base
US sales
90
50
58
4 5
62
5
6
81
130
79
7
9
11
11
% YoY growth
14
26
61 29 20
12 12 13
28
15
Exhibit 6: ANDA filed v/s approved (quarterly trend)
ANDAs filed
ANDAs approved
72
13
40
10 10
8
283
17 111 7 12 133 144
2 3 3 10 21 3 3
18
Source: Company, MOSL
Source: Company, MOSL
Exhibit 7: 4 successive qtr with more than 30% growth
ARV sales
% YoY growth
th
Exhibit 8: API business trend …
27
95
API sales
20
17
10
15
13
13
4
7
7
8
7
(5)
7
(9) (10)
7
7
7
7
% YoY growth
45
(16)
3 2
4
2
37
(8)
2
2
26
2
2
7
17
2
51 37
(40)
1
3
3
32
3
8
1
3
6
7
7
6
Source: Company, MOSL
Source: Company, MOSL
9 November 2015
3

Aurobindo Pharma
Exhibit 9: Margins improving…
Gross margin (%)
49
49
48
48
52
58
61
EBITDA margin (%)
53
56
51
57
55
56
17
17
15
18
23
30
32
23
22
19
21
22
23
Source: Company, MOSL
Operating metrics
Exhibit 10: Key operating metrics
3QFY13
Revenue Mix (%)
4QFY13
57.9
11.5
30.7
15.7
42.1
11.9
15.4
14.8
30.0
41.5
3.9
61.5
45.1
16.9
14.4
26.0
10.7
1QFY14
63.0
11.0
35.8
16.2
37.0
12.7
12.4
11.9
40.7
68.1
36.8
90.3
52.6
10.2
24.1
(3.0)
12.6
2QFY14
63.1
12.0
37.5
13.6
36.9
12.5
10.6
13.8
27.6
36.1
(7.6)
72.0
17.1
15.4
31.6
(8.3)
26.6
3QFY14 4QFY14 1QFY15
65.9
10.1
42.7
13.0
34.1
11.8
10.0
12.3
38.7
57.5
25.9
81.4
27.4
12.8
21.3
(11.3)
33.0
68.1
8.2
47.1
12.8
31.9
10.7
9.9
11.2
49.4
75.8
6.6
129.6
21.4
13.2
35.0
(3.5)
13.1
77.2
7.6
37.9
31.7
22.8
8.1
7.2
7.5
68.6
106.7
16.9
78.6
229.4
3.6
7.3
(2.0)
5.5
2QFY15 3QFY15
76.6
4.8
40.2
31.6
23.4
7.4
8.0
8.0
50.1
82.1
(40.4)
60.7
249.2
(4.6)
(11.4)
13.6
(12.4)
79.0
10.4
37.5
31.0
21.0
6.4
7.7
6.9
46.9
76.2
51.5
29.0
249.6
(9.4)
(20.4)
13.7
(17.5)
4QFY15 1QFY16 2QFY16
78.8
8.4
42.0
28.5
21.2
6.4
7.4
7.4
34.9
56.0
37.0
20.1
200.7
(10.4)
(19.5)
0.4
(11.2)
78.5
8.8
42.5
27.2
21.5
6.4
7.8
7.3
14.1
15.9
31.7
28.1
(2.4)
7.9
(9.2)
23.3
11.5
79.5
8.0
43.8
27.7
20.5
5.9
6.8
7.8
15.4
19.9
95.0
25.8
1.0
0.9
(7.9)
(2.3)
12.2
Formulations
ARV form.
US generic form.
EU form.
APIs
SSPs
Cephs
ARV and others
Revenue Gr. (%)
58.0
11.1
32.7
14.2
42.0
13.5
15.6
12.8
22.1
23.4
(16.0)
57.8
9.0
20.4
35.5
26.6
2.3
Formulations
ARV form.
US generic form.
EU form.
APIs
SSPs
Cephs
ARV and others
As % of sales
Raw material
SG&A
R&D cost
Tax Rate
Margins (%)
Gross Margins
EBITDA Margins
PAT margins
51.1
10.9
23.6
6.6
48.9
16.5
3.4
51.9
11.3
22.6
29.3
48.1
15.3
8.6
52.0
11.0
19.1
58.3
48.0
17.9
10.1
48.2
10.3
18.9
14.6
51.8
22.9
6.8
42.0
10.0
18.0
24.3
58.0
30.1
5.1
38.6
10.1
19.6
24.8
61.4
31.9
15.2
47.5
10.6
19.4
26.1
52.5
22.6
19.3
43.9
11.7
22.3
27.4
56.1
22.1
20.4
48.6
11.6
20.4
29.0
51.4
19.3
14.2
43.4
11.8
24.0
27.6
45.4
11.0
21.8
30.2
44.1
11.3
21.4
26.5
56.6
54.6
55.9
20.7
21.8
23.3
13.9
12.5
14.8
Source: Company; MOSL
9 November 2015
4

Aurobindo Pharma
Valuation and view
ARBP has outperformed most Pharma peers over the last 12 months. This has been
driven by significant improvement in operating performance post clearance of
USFDA import alert and ramp-up in US launches, including high margin gCymbalta.
With recent acquisition in EU (Actavis assets) and US (Natrol), the share of high
margin formulations in total revenues has increased to 79% (vs 54% in FY10),
positioning it among large cap formulation players. Our target price of INR 1050
discounts ARBP’s Sep’17E EPS at 20x PE multiple which is:
At a premium to its 3 yr average P/E multiple which is justified given stronger
business profile and earnings outlook
At 10% discount to sector average target P/E multiple, factoring higher leverage
and potential execution related risks.
Implies a PEG of 0.66x (FY15-18E EPS CAGR of 31%)
We believe that the re-rating of the stock from single digit P/E multiple to current
levels partly factors transition to formulations player, improved execution in US and
moderation in leverage (from 1.2x D/E in FY10 to 0.7x in FY15E). However, current
valuations at 23.6x FY16E and 18.0x FY17E are still at ~15-20% discount to the sector
average, which is unjustified in our view. We argue for P/E re-rating for ARBP due to:
Strong EPS outlook of 31% CAGR backed by 18% revenue growth
Strong free cash flow generation of INR42b over FY15-18E.
Deleveraging of balance sheet, as we expect D/E to improve to 0.2x by FY18E (vs
0.7x now).
Key catalysts to drive stock’s performance over the medium term are:
Improvement in EU profitability (30% of business) led by deeper penetration in
existing markets and site transfer to India.
Launch of high margin products in US including injectables (25+ launches over
next 18 months), controlled substance, etc.
Focus on high margin triple combination ARV products in Africa (from FY16E)
Delay in ANDA approvals
Worsening of pricing environment in EU.
Currency fluctuations both in USD and EUR terms.
Exhibit 12: PE relative to Sensex
Risks to our investment assumptions:
Exhibit 11: PE Band (x)
Source: Company, MOSL
9 November 2015
Source: Company, MOSL
5

Aurobindo Pharma
Story in charts
Exhibit 13: Formulation led sales growth (INR b)
Formulations (INR b)
API (INR b)
34
29
18
8
FY11
Exhibit 14: US Sales to grow at 26% CAGR over FY15-18E
US generic formulations (INR b)
YoY growth (%)
133
32
94
37
-8
8
FY12
18
FY13
34
FY14
47
58
77
94
24
32
22
27
16
19
18
24
21
26
25
34
29
54
96
29
115
139
164
7
FY10
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 15: EBITDA growth to improve in FY16-18E
EBITDA (INR m)
EBITDA growth (%)
Exhibit 16: EBITDA margins improving with product mix
Gross Margins (%)
EBITDA Margins (%)
148
59
17
8
FY10
10
FY11
-36
6
FY12
51.9
50.0
45.5
48.9
55.5
54.6
55.5
56.0
56.5
41
20
21
FY14
26
28
33
24
41
20
49
23.0
21.9
26.3
13.2
14.7
21.2
22.9
24.0
24.9
9
FY13
FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 17: EPS growth to sustain at 28%
EPS (INR)
Exhibit 18: Rich ANDA pipeline
ANDA filed
ANDAs pending
382
168
172
8.6
FY10
9.2
FY11
3.3
FY12
6.9
FY13
22.8
FY14
27.7
36.2
47.5
58.0
59
FY10
209
75
FY11
239
92
269
88
336
145
FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY12
FY13
FY14
YTD
Source: Company, MOSL
9 November 2015
6

Aurobindo Pharma
Exhibit 19: Improving cash flows to reduce the debt
Total Debt (INR b)
5.0
2.5
2.3
3.7
1.3
1.1
Net Debt/EBITDA
Exhibit 20: Return ratios (%)
ROE (%)
42
31
25
16
19
18
8
8
11
27
28
30
31
ROCE (%)
36
34
33
30
31
1.6
0.5
32
0.0
28
22
24
31
34
36
39
36
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 21: R&D expense to increase going ahead
R&D expense (INR b)
% of sales
Exhibit 22: Asset turnover improving …
Gross Block (INR b)
Asset turnover (x)
4.9
4.1
4.9
3.4
3.5
5.1
4.9
5.4
5.9
1.7
1.5
1.6
2.0
2.2
2.2
2.4
2.5
1.4
2
FY10
2
FY11
2
FY12
2
FY13
4
FY14
6
7
9
12
24
FY10
24
FY11
31
FY12
37
FY13
42
FY14
56
66
72
78
FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 23: EU business to grow at ~5%
Actavis assets (INR b)
YoY growth (%)
378
24
19
3
FY12
36
5
FY13
44
7
FY14
25
7
FY15E
-1
8
FY16E
24
2
8
FY17E
25
7
9
FY18E
Base EU business (INR b)
Exhibit 24: Formulation share getting bigger
Formulations (INR b)
16
18
21
25
29
27
API (INR b)
29
32
34
19
24
26
34
54
96
115
139
164
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E FY18E
Source: Company, MOSL
Source: Company, MOSL
9 November 2015
7

Aurobindo Pharma
Financials and valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Current Tax
Deferred Tax
Tax Rate (%)
Less: Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY11
43,816
22.5
9,598
21.9
1,715
7,883
625
252
7,510
372
7,881
2,251
0
28.6
-4
5,634
5,369
11.5
12.3
FY12
46,274
5.6
6,101
13.2
2,005
4,096
1,028
247
3,315
-5,445
-2,129
327
-1,216
41.7
-6
-1,235
1,939
-63.9
4.2
FY13
58,553
26.5
8,610
14.7
2,487
6,122
1,313
285
5,095
-1,353
3,741
132
695
22.1
-25
2,939
3,993
105.9
6.8
FY14
80,998
38.3
21,328
26.3
3,125
18,203
1,079
232
17,356
-2,031
15,325
3,635
0
23.7
-38
11,729
13,278
232.5
16.4
FY15
121,205
49.6
25,636
21.2
3,326
22,310
843
808
22,275
-596
21,679
5,966
0
27.5
-45
15,758
16,190
21.9
13.4
FY16E
142,808
17.8
32,703
22.9
4,257
28,446
966
800
28,281
-835
27,446
6,999
0
25.5
-50
20,497
21,119
30.4
14.8
FY17E
168,976
18.3
40,554
24.0
5,023
35,531
1,081
1,000
35,450
0
35,450
7,799
0
22.0
-55
27,706
27,706
31.2
16.4
(INR Million)
FY18E
196,037
16.0
48,813
24.9
5,461
43,352
1,112
1,200
43,440
0
43,440
9,557
0
22.0
-60
33,943
33,943
22.5
17.3
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Deferred Liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
E: MOSL Estimates
FY11
582
23,866
24,448
91
1,191
24,143
49,873
24,380
6,994
17,386
0
6,574
385
34,334
14,553
12,310
1,867
5,604
8,807
7,764
429
614
25,527
49,872
FY12
582
22,814
23,397
102
-16
30,959
54,442
30,863
8,916
21,947
0
6,454
385
33,536
15,456
12,400
709
4,972
7,880
6,601
572
706
25,656
54,442
FY13
582
25,475
26,058
110
680
34,355
61,202
37,080
11,246
25,834
554
2,185
223
43,982
19,236
15,970
2,085
6,692
11,576
9,687
998
891
32,406
61,202
FY14
583
36,919
37,502
257
2,054
36,339
76,151
41,817
14,371
27,445
764
2,105
198
64,386
23,675
26,366
1,786
12,559
18,747
13,512
3,877
1,358
45,640
76,151
FY15
584
50,975
51,559
258
2,058
38,636
92,511
55,810
17,697
38,112
640
2,500
198
87,647
36,113
35,392
4,692
11,451
36,587
20,511
13,650
2,426
51,061
92,511
FY16E
584
70,304
70,888
263
2,099
36,023
109,273
65,810
21,954
43,855
640
2,500
200
92,889
38,304
41,082
603
12,900
30,811
26,386
3,500
925
62,078
109,273
FY17E
584
96,550
97,134
269
2,141
31,771
131,314
71,810
26,977
44,832
640
2,500
200
118,233
44,813
48,609
10,910
13,900
35,091
30,666
3,500
925
83,142
131,314
(INR Million)
FY18E
584
129,033
129,617
274
2,184
28,345
160,419
77,810
32,438
45,371
640
2,500
200
151,001
51,399
56,394
29,307
13,900
39,293
34,868
3,500
925
111,708
160,419
0
9 November 2015
0
0
0
0
0
0
0
8

Aurobindo Pharma
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Working Cap. Turnover (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Debt/Equity
FY11
9.2
12.2
42.0
1.2
12.1
FY12
3.3
6.8
40.2
0.5
-23.6
FY13
6.9
11.1
44.7
0.8
14.9
FY14
22.8
28.1
64.3
1.5
7.5
37.5
30.4
13.3
6.6
25.0
0.2
-3.9
41.8
27.5
1.1
107
116
137
198
3.4
17
1.0
FY15
27.7
33.4
88.3
2.3
8.3
30.8
25.6
9.7
4.4
20.8
0.3
5.1
36.4
28.2
1.3
109
105
136
140
2.4
26
0.7
FY16E
36.2
43.5
121.4
2.0
5.7
23.6
19.7
7.0
3.7
16.4
0.2
1.0
34.5
29.7
1.3
98
103
152
157
3.0
29
0.5
FY17E
47.4
56.0
166.3
2.5
5.3
18.0
15.3
5.1
3.1
12.8
0.3
29.1
33.0
31.0
1.3
97
103
151
156
3.4
33
0.3
FY18E
58.1
67.5
221.9
2.5
4.3
14.7
12.7
3.9
2.5
10.2
0.3
41.6
29.9
31.1
1.2
96
103
149
153
3.8
39
0.2
0.1
-2.2
25.1
18.4
0.9
121
100
129
197
3.9
13
1.0
0.1
-12.3
8.1
8.4
0.8
122
96
96
197
4.3
4
1.3
0.1
-0.1
16.1
11.2
1.0
120
97
118
189
3.8
5
1.3
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest / Dividend received
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from Investments
Issue of Shares
(Inc)/Dec in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY11
7,883
1,715
252
-2,251
-6,409
1,190
372
1,562
-2,866
-1,304
383
-2,483
1,207
2,645
-625
-684
-483
2,060
1,139
728
1,867
FY12
4,096
2,005
247
-327
-1,288
4,733
-5,445
-712
-6,446
-7,157
0
-6,446
474
6,828
-1,028
-291
15
5,998
-1,159
1,867
708
FY13
6,122
2,487
285
-132
-5,374
3,390
-1,353
2,036
-2,106
-70
-163
-2,269
159
3,403
-1,313
-437
-204
1,608
1,376
709
2,084
FY14
18,203
3,125
232
-3,635
-13,533
4,393
-2,031
2,363
-4,656
-2,293
-25
-4,681
590
2,131
-1,079
-875
1,253
2,020
-298
2,085
1,786
FY15
22,310
3,326
808
-5,966
-2,515
17,963
-596
17,367
-14,388
2,979
0
-14,388
-386
2,298
-843
-1,314
172
-73
2,906
1,786
4,691
FY16E
28,446
4,257
800
-6,999
-15,106
11,399
-835
10,564
-10,000
564
2
-9,998
0
-2,607
-966
-1,168
87
-4,654
-4,088
4,692
603
FY17E
35,531
5,023
1,000
-7,799
-10,758
22,997
0
22,997
-6,000
16,997
0
-6,000
0
-4,247
-1,081
-1,460
97
-6,691
10,307
603
10,910
(INR Million)
FY18E
43,352
5,461
1,200
-9,557
-10,169
30,288
0
30,288
-6,000
24,288
0
-6,000
0
-3,421
-1,112
-1,460
103
-5,890
18,397
10,910
29,307
9 November 2015
9

Aurobindo Pharma
Corporate profile: Aurobindo Pharma
Company description
A well integrated pharma company, Aurobindo
Pharma (ARBP) features among the top 10
companies in India in terms of consolidated
revenues. ARBP exports to over 125 countries
across the globe with more than 70% of its
revenues derived out of international operations.
With multiple facilities approved by leading
regulatory agencies such as USFDA, EU GMP, UK
MHRA, South Africa-MCC, Health Canada and Brazil
ANVISA, ARBP makes use of in-house R&D for rapid
filing of patents, Drug Master Files (DMFs),
Abbreviated New Drug Applications (ANDAs) and
formulation dossiers across the world. ARBP is
among the largest filers of DMFs and ANDAs from
India.
Exhibit 26: Shareholding pattern (%)
Sep-15
Promoter
DII
FII
Others
53.9
6.1
28.9
11.1
Jun-15
53.9
6.3
29.5
10.3
Sep-14
54.1
8.0
27.7
10.2
Exhibit 25: Sensex rebased
Exhibit 27: Top holders
Holder Name
Stichting Depositary APG Emerging Markets Equity P
HDFC Trustee Company Ltd HDFC Equity Fund
Jhunjhunwala Rakesh Radheshyam
% Holding
1.6
1.5
1.3
Note: FII Includes depository receipts
Exhibit 28: Top management
Name
K Ragunathan
K Nithyananda Reddy
N Govindarajan
Designation
Chairman
Vice Chairman & Whole Time Dir
Managing Director
Exhibit 29: Directors
Name
K Ragunathan*
K Nithyananda Reddy
N Govindarajan
P V Ramprasad Reddy
M Sitarama Murthy*
Name
D Rajagopala Reddy*
P Sarath Chandra Reddy
M Sivakumaran
M Madan Mohan Reddy
Avnit Bimal Singh*
*Independent
Exhibit 30: Auditors
Name
S R Batliboi & Associates LLP
S Chidambaram
KPMG
Sagar & Associates
Type
Statutory
Secretarial Audit
Internal
Cost Auditor
Exhibit 31: MOSL forecast v/s consensus
EPS (INR)
FY16
FY17
FY18
MOSL
forecast
36.2
47.4
58.1
Consensus
forecast
35.2
43.2
52.2
Variation (%)
2.8
9.8
11.4
9 November 2015
10

Aurobindo Pharma
NOTES
9 November 2015
11

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Analyst Certification
Disclosure of Interest Statement
Analyst ownership of the stock
Served as an officer, director or employee
AUROBINDO PHARMA
No
No
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