Aurobindo Pharma expects China plant to break even at EBITDA level this year
PTI
New Delhi, Aug 17 (PTI) Aurobindo Pharma expects its China facility to break even in the third quarter of the current financial year, according to its CFO Santhanam Subramanian.
The Hyderabad-based drug maker commenced operations at the facility in the last week of November 2024 and is now ramping up production.
'This facility with an initial capacity of 2 billion units plus is ramping up as expected and will begin contributing to revenue in the coming quarters and is expected to break even at the EBITDA (earnings before interest, taxes, depreciation, and amortisation) level by Q3 FY26," Subramanian said in an analyst call.
He noted that around USD 145 million has been invested in the facility, which commenced production and invoicing in Q4 FY25 and Q1 FY26, respectively.
Elaborating on other investments, Subramanian said the company has invested about USD 70 million in two US facilities, with production expected to start in the current fiscal year.
Elaborating further, he noted that the company plans to file for more than 20 products in the US and Europe from its Eugia-V plant in Visakhapatnam.
He noted that the company has invested around USD 30 million in the Biologics CMO business so far, and the balance of USD 100 million plus capital is expected to be invested by March 2027.
Commercial operations ramping up at new manufacturing sites would further support the topline growth and margin improvement in the upcoming quarters, he added.
'We are confident of achieving our internal target margin of 20-21 per cent in FY26," Subramanian stated.
Aurobindo Pharma reported a 10 per cent year-on-year dip in its consolidated net profit to Rs 824 crore for the June quarter, due to a fall in sales in the US and API business vertical.
Its revenue from operations increased to Rs 7,868 crore for the June quarter against Rs 7,567 crore in the year-ago period. PTI MSS BAL BAL
view comments
First Published:
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
13 minutes ago
- Economic Times
Free sandwich, free wi-fi, Rs 1,200 bank bill: Inside India's airport lounge economy
Synopsis Airport lounges in India seem free, but the reality is different. Banks and card networks cover the cost, paying operators between Rs 600 and Rs 1,200 per domestic visit, or $25 to $35 internationally. They use lounge access to build loyalty and drive spending. Lounges in turn profit from volume, partnerships, and limited paid passes. With usage soaring, overcrowding is pushing banks to tighten rules, capping visits and cutting guest access. Travellers still save money, but the fine print is getting stricter. TIL Creatives Representative AI Image Airport lounges have become a familiar sight for Indian travellers. They promise calm amid the bustle of terminals: free food and drinks, recliners, Wi-Fi, charging points, and sometimes even spa treatments or sleeping pods. The attraction is obvious. But one question lingers. If passengers are not paying directly, who is?Data analyst Suraj Kumar Talreja broke down the business model in a widely read post on X. 'Most people who enter lounges in India today don't actually pay anything out of pocket. You swipe your credit or debit card and walk in. It feels free.' That 'free' entry is anything but. As Talreja explained, 'Every time you enter a lounge using your card, whether it's HDFC, Axis, SBI, ICICI, or even Rupay, the lounge operator gets paid by the bank (or by Visa/Mastercard/Amex). This is part of your credit card benefit package, and the bank foots the bill as a loyalty and acquisition cost.' The numbers add up quickly. 'In India, it typically ranges from Rs 600 to Rs 1,200 per visit (domestic lounges) and 25 dollars to 35 dollars for international lounges (via networks like Priority Pass or LoungeKey),' he said. Even a quick sandwich and coffee can cost a bank that fee. — suritalreja (@suritalreja) So how do lounges profit when most visitors pay nothing upfront? Talreja was direct. 'They get paid per visit, get volume from credit card users, often save on cost by partnering with caterers and airports and some sell day passes (low share).' There are four main ways travellers gain access: credit and debit card tie-ups, international networks like Priority Pass or DreamFolks, direct paid entry (usually Rs 1,500–Rs 3,000), and airline tickets in higher classes. The first option dominates in India, driven by banks competing for customers. Banks are not simply covering costs out of generosity. Lounge access works as a powerful marketing tool. It creates a sense of privilege, encouraging cardholders to use their cards more often, which in turn earns banks transaction fees. Customers are also more likely to stay loyal or upgrade to premium cards. As Talreja put it, it is 'psychology + economics.' International lounge networks such as LoungeKey and Priority Pass play a different role. They do not own lounges. Instead, they act as middlemen, selling access rights in bulk to banks and settling payments directly with lounge has witnessed a boom in lounge usage. With every second traveller carrying a card promising entry, overcrowding has become common at airports in Delhi, Mumbai, and Bengaluru. This is pushing banks to tighten restrictions include limiting access to four free visits per quarter, barring supplementary cardholders, restricting entry to domestic terminals only, denying guest access, and suspending lounge use if a card is inactive. Premium cards such as HDFC Infinia, Axis Reserve, Amex Platinum, and ICICI Emeralde still promise unlimited or international visits, but these remain travellers, lounges often remain worthwhile. A plate of food and drinks can save between Rs 500 and Rs 1,000 compared to airport restaurants. Free Wi-Fi, air conditioning, charging stations, and clean restrooms add to the value. 'Some lounges have beds and showers (especially in T3 Delhi or Bangalore International),' noted everyone is convinced. One user responded to his thread by saying, 'Airport lounges in India are now like a second-class railway station waiting room. Best skipped I think.' Others highlighted that many cards now demand a minimum spend before lounge privileges kick these debates, the model continues to benefit all sides. Travellers get comfort, banks build loyalty and earn fees, lounges secure steady payments, and airports manage crowds more one user summarised on X after reading Talreja's thread: 'What an awesome thread. Loved the details.' Another added, 'There is a B2B version of the lounge too, wherein you can buy a membership to get access to the lounge.'The economics may not be visible to passengers, but every swipe of a card is part of a carefully balanced system. It looks free, but it is anything but.
Time of India
27 minutes ago
- Time of India
Free sandwich, free wi-fi, Rs 1,200 bank bill: Inside India's airport lounge economy
Airport lounges have become a familiar sight for Indian travellers . They promise calm amid the bustle of terminals: free food and drinks, recliners, Wi-Fi, charging points, and sometimes even spa treatments or sleeping pods. The attraction is obvious. But one question lingers. If passengers are not paying directly, who is? Data analyst Suraj Kumar Talreja broke down the business model in a widely read post on X. 'Most people who enter lounges in India today don't actually pay anything out of pocket. You swipe your credit or debit card and walk in. It feels free.' Who really pays for the lounge access? That 'free' entry is anything but. As Talreja explained, 'Every time you enter a lounge using your card, whether it's HDFC, Axis, SBI , ICICI, or even Rupay, the lounge operator gets paid by the bank (or by Visa/Mastercard/Amex). This is part of your credit card benefit package, and the bank foots the bill as a loyalty and acquisition cost.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Worried About Bills? Learn How Pay-Later Loans Work TheDaddest Undo The numbers add up quickly. 'In India, it typically ranges from Rs 600 to Rs 1,200 per visit (domestic lounges) and 25 dollars to 35 dollars for international lounges (via networks like Priority Pass or LoungeKey),' he said. Even a quick sandwich and coffee can cost a bank that fee. — suritalreja (@suritalreja) Live Events How lounges stay afloat So how do lounges profit when most visitors pay nothing upfront? Talreja was direct. 'They get paid per visit, get volume from credit card users, often save on cost by partnering with caterers and airports and some sell day passes (low share).' There are four main ways travellers gain access: credit and debit card tie-ups, international networks like Priority Pass or DreamFolks, direct paid entry (usually Rs 1,500–Rs 3,000), and airline tickets in higher classes. The first option dominates in India, driven by banks competing for customers. Why banks want you inside lounges Banks are not simply covering costs out of generosity. Lounge access works as a powerful marketing tool. It creates a sense of privilege, encouraging cardholders to use their cards more often, which in turn earns banks transaction fees. Customers are also more likely to stay loyal or upgrade to premium cards. As Talreja put it, it is 'psychology + economics.' International lounge networks such as LoungeKey and Priority Pass play a different role. They do not own lounges. Instead, they act as middlemen, selling access rights in bulk to banks and settling payments directly with lounge operators. India has witnessed a boom in lounge usage. With every second traveller carrying a card promising entry, overcrowding has become common at airports in Delhi, Mumbai, and Bengaluru. This is pushing banks to tighten terms. New restrictions include limiting access to four free visits per quarter, barring supplementary cardholders, restricting entry to domestic terminals only, denying guest access, and suspending lounge use if a card is inactive. Premium cards such as HDFC Infinia, Axis Reserve, Amex Platinum, and ICICI Emeralde still promise unlimited or international visits, but these remain exceptions. Do lounges still make sense? For travellers, lounges often remain worthwhile. A plate of food and drinks can save between Rs 500 and Rs 1,000 compared to airport restaurants. Free Wi-Fi, air conditioning, charging stations, and clean restrooms add to the value. 'Some lounges have beds and showers (especially in T3 Delhi or Bangalore International),' noted Talreja. Not everyone is convinced. One user responded to his thread by saying, 'Airport lounges in India are now like a second-class railway station waiting room. Best skipped I think.' Others highlighted that many cards now demand a minimum spend before lounge privileges kick in. A model with winners all round Despite these debates, the model continues to benefit all sides. Travellers get comfort, banks build loyalty and earn fees, lounges secure steady payments, and airports manage crowds more smoothly. As one user summarised on X after reading Talreja's thread: 'What an awesome thread. Loved the details.' Another added, 'There is a B2B version of the lounge too, wherein you can buy a membership to get access to the lounge.' The economics may not be visible to passengers, but every swipe of a card is part of a carefully balanced system. It looks free, but it is anything but.
Business Standard
30 minutes ago
- Business Standard
Enviro Infra Engineers invests additional Rs 25 cr in EIE Renewables
Enviro Infra Engineers has made an additional investment of Rs 25 crore by way of acquisition of equity shares of EIE Renewables, wholly owned subsidiary of the Company. The investment is made by way of subscription to additional 2,50,00,000 equity shares at a face value of Rs 10/- each offered by EIE Renewables, on a right by Capital Market - Live News
