Aurobindo Pharma Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2022

1. The financial results of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the relevant rules issued thereunder and in terms of Regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

2. The above standalone financial results as reviewed by the audit committee have been approved by the Board of Directors at its meeting held on 30 May 2022. The statutory auditors have carried out audit of the above results for the quarter and year ended 31 March 2022. An unmodified report has been issued by them thereon.

3. The Company operates in only one segment viz., 'Pharmaceutical Products'.

4. Sales of standalone include exports of Rs.18,313.6 million for the current quarter (31 March 2021: Rs.35,628.6 million) and for the year ended 31 March 2022 of Rs.76,036.0 million (31 March 2021: Rs.137,277 million).

5. During the year the following units were transferred within the Group:

The undertaking of Unit 10 located at Multiproduct Special Economic Zone, Naidupet, Mandal, SPSR Nellore District, Andhra Pradesh, transferred to its wholly-owned subsidiary APL Healthcare Limited through a slump sale for consideration of Rs.13,152.7 million, undertaking of Unit-4 of the Company located at Pashamylaram, Pattancheru Mandal, Sangareddy district, Telangana, transferred to Eugia Pharma Specialities Limited, a wholly owned subsidiary of the Company for consideration of Rs.9,383.2 million and undertaking of Unit-16 of the Company located at TSIIC, SEZ, Polepally Village, Jadcherla Mandal, Mahbubnagar district, Telangana, transferred to Wytells Pharma Private Limited, a wholly owned step-down subsidiary of the Company and 100% subsidiary of Eugia Pharma Specialities Limited for consideration of Rs.2,941.2 million. These transfers were approved by the Board of Directors of the Company.

Due to the above transfers, the Company has recorded a capital gain tax of Rs.251.7 million and a reversal of deferred tax amounting to Rs.610.7 million.

The Board of Directors of the Company as part of Company’s Verticalization of Vaccines Business, in its meeting held on 31 December 2021 approved the sale and transfer of undertaking of Unit 18 of the Company located at Survey No.69, 70, 71 & 72, Indrakaran Village, Kandi Mandal, Sangareddy District - 502203, Telangana, to Auro Vaccines Private Limited, a wholly owned subsidiary of the Company. This transfer is aimed at segregation of the vaccines business and subsidiarization of vaccines business in an special purpose vehicle. The slump sale of Unit 18 is effective from January 1, 2022 for a lumpsum consideration of Rs.3275.4 million (on a cash free basis). Unit 18 is yet to commence commercial operations.


6. The Company continues to monitor the possible effects that may result from the pandemic relating to COVID-19. The Company continues to take several business continuity measures with a view to ensure minimal disruption with respect to operations including production and distribution activities. The Company has not experienced any significant difficulties with respect to market demand, financing capital expansion projects, collections or liquidity in other markets. Based on internal and external sources of information, current economic environment and future economic indicators, the Company has assessed the financial impact of the COVID-19 situation on its operations particularly on the carrying amounts of receivables, inventories, property, plant and equipment and intangible assets. Wherever considered necessary an assessment of the impact has been carried out and the necessary adjustments if material have been recorded. However, the impact of the pandemic could be different from those estimated today considering the uncertainties involved. The Company will continue to monitor any material changes to future economic conditions.

7. Profit before tax includes exceptional items of Rs.747.1 million for the quarter and year ended 31 March 2022 representing impairment of investment relating to a subsidiary.

8. During the quarter ended 31 March 2022, the Company elected to exercise the option permitted under Section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognised provision for income tax for the year ended 31 March 2022 and re-measured its deferred tax assets / liabilities based on the rate prescribed in the said Section. The impact of this change has been recognised in the statement of profit and loss over the period from 01 April 2021 to 31 March 2022.

9. The Board has approved interim dividend @ 450 % i.e.Rs.4.50 (Rupees four and fifty paisa only) per equity share of Re.1/- (Rupee One only) for the year 2021-22.

10. The figures of the quarter ended 31 March 2022 and 31 March 2021 are the balancing figures between audited figures in respect of the full financial year upto 31 March 2022 and 31 March 2021 respectively and the unaudited published year to date figures upto 31 December 2021 and 31 December 2020 respectively, being the date of the end of the third quarter of the financial year. The standalone results for the nine months ended 31 December 2021 and 31 December 2020 have been subjected to the limited review by the statutory auditors.

11.Previous period figures have been regrouped / rearranged wherever considered necessary.