Earnings Review
Torrent Pharma Oct-Dec consol PAT growth lowest in 6 qtrs
This story was originally published at 19:47 IST on 24 January 2025
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--Torrent Pharma Oct-Dec Brazil revenue INR 2.91 bln, down 7% on year
--Torrent Pharma Oct-Dec Germany revenue INR 2.82 bln, up 4% on year
--Torrent Pharma Oct-Dec US business revenue INR 2.71 bln, down 1% on year
--Torrent Pharma Oct-Dec India revenue INR 15.81 bln, up 12% on year
--Torrent Pharma Oct-Dec consol R&D spend INR 1.51 bln, up 19% on year
--Torrent Pharma Oct-Dec consol operating EBITDA margin 32.5% vs 31.8% yr ago
--Torrent Pharma Oct-Dec consol operating EBITDA INR 9.14 bln, up 5% on year
--Torrent Pharma Apr-Dec consol sales INR 85.57 bln vs INR 79.83 bln yr ago
--Torrent Pharma Apr-Dec consol PAT INR 14.13 bln vs INR 12.07 bln year ago
--Torrent Pharma to pay INR 26 per share interim dividend
--Torrent Pharma Oct-Dec consol sales INR 28.09 bln vs INR 27.32 bln yr ago
--Torrent Pharma Oct-Dec consol PAT INR 5.03 bln vs INR 4.43 bln year ago
--Analysts saw Torrent Pharma Oct-Dec consol net profit INR 5.09 bln
--Torrent Pharma Oct-Dec consol net profit INR 5.03 bln
By Sunil Raghu
AHMEDABAD - Torrent Pharmaceuticals Ltd.'s earnings for the December quarter announced Friday failed to meet the Street's expectations despite "robust" India business traction. A sharp depreciation in Brazil's currency and shutdown of a contract manufacturing unit played spoilsport.
The company reported a consolidated net profit of INR 5.03 billion for the quarter, up 13.5% from INR 4.43 billion a year ago but below analysts' estimate of INR 5.09 billion. This is the lowest on-year growth in net profit for Torrent Pharma in six quarters.
The company's consolidated revenue for the quarter was INR 28.09 billion, up 2.81% from INR 27.32 billion a year ago. Analysts saw the company reporting a revenue of INR 29.80 billion for the quarter. This is the lowest on-year growth in revenue for the drug manufacturer in last 15 quarters.
For Apr-Dec, the company reported a consolidated net profit of INR 14.13 billion, up 17.07% from INR 12.07 billion a year ago. Consolidated revenue for the period was INR 85.57 billion, up 7.19% from INR 79.83 billion a year ago.
The raw material cost for the quarter was INR 3.7 billion, down 2.37% from INR 3.79 billion a year ago. The company's expenditure towards purchase of stock-in-trade was up 28.44% on year at INR 4.2 billion. Finance cost for the quarter was INR 570 million, down 28.75% from INR 800 million a year ago. Total expenditure for the quarter was INR 21.51 billion, down 0.23% from INR 21.56 billion a year ago. Consolidated research and development expenditure in Oct-Dec was INR 1.51 billion, up 5.4% on year. Other expenses for the quarter were INR 6.73 billion, almost at par with INR 6.7 billion a year ago.
The operating earnings before interest, taxes, depreciation, and amortisation were INR 9.14 billion, up 5% on year. Operating EBITDA margin for Oct-Dec was 32.5%, compared to 31.8% a year ago. The gross margin for the quarter was 76%.
KEY MARKETS
The company's revenue from India operations grew 12% on year to INR 15.81 billion, led by outperformance in the focus therapies segment. Torrent Pharma's chronic illnesses business grew at 14% compared to industry growth of 10%. For Apr-Dec, the revenue from India operations was INR 48.48 billion, up 13% on year.
Revenue from operations in Brazil fell 7% on year to INR 2.91 billion, impacted by steep depreciation in the country's currency. The revenue from operations in Brazil was 203 million Brazilian real, up 10% on year, in constant currency terms.
The revenue from Germany rose 4% year to INR 2.82 billion in Oct-Dec, aided by growth momentum through incremental tender wins coupled with better conversion of existing tenders. In constant currency terms, the revenue from operations in Germany was 31 million euros, up 4% on year. For Apr-Dec, revenue from the Germany operations rose 7% on year to INR 8.53 billion. In constant currency terms, the operations in the Apr-Dec rose 6% on year to 94 million euros.
Revenue from the US market fell 1% on year to INR 2.71 billion in the December quarter. The revenue was down 3% on year in constant currency terms to $32 million. For Apr-Dec, the revenue was down 2% at INR 7.98 billion.
As on Dec. 31, Torrent Pharma had 26 Abbreviated New Drug Applications pending approval with the US Food and Drug Administration. Of these, the company has received tentative approvals for six. Two ANDAs were approved in Oct-Dec.
The board has recommended an interim dividend of INR 26 per share. On Friday, shares of Torrent Pharma ended 0.5% lower at INR 3,248.40 per share on the National Stock Exchange. End
Edited by Ashish Shirke
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