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Informist, Monday, Jul. 28, 2025

By Rajesh Gajra

NEW DELHI – A slightly better-than-expected on-year growth in revenue boosted the bottom line performance of Torrent Pharmaceuticals Ltd. in the June quarter. The company, however, did not meet analyst expectations on its net profit. The company's revenues were aided by good growth across key geographies.

Torrent Pharma reported a 20% jump in its consolidated net profit to INR 5.48 billion, missing analysts' estimate of INR 5.97 billion. The bottom line grew on the back of an 11% rise in consolidated revenue from operations to INR 31.78 billon.

The reported revenue of INR 31.78 billion for the June quarter was above the Street estimate of INR 31.52 billion. The 11.1% on-year growth was also the highest in seven quarters.

The boost to revenue came from a 16% on-year rise in revenue from the company's US business in constant currency terms to $36 million in Apr-Jun. In rupee terms, the US business delivered a 19% on-year rise in revenue to INR 3.08 billion. The company said in an earnings press release that its recent launches in the US "have achieved targeted market shares."

The India sales of Torrent Pharma rose 11% on year to INR 18.11 billion in the June quarter "led by outperformance in focus therapies." The company said its India chronic business recorded a 13% growth in the June quarter.

Torrent Pharma's revenue from Brazil operations rose 11% on year to INR 2.18 billion. In constant currency terms, the growth was higher at 16%. The company said the growth in Brazil business came on the back of "performance of top brands and new launches."

In Germany, Torrent Pharma's revenue in the reporting quarter was up 9% on year at INR 3.08 billion, but the growth was only 1% in constant currency terms. The German market "was impacted due to supply disruption at third party supplier," according to the company.

PROFITABILITY

With operating expenses rising moderately, the company reported a 14% jump in operating earnings before interest, tax, depreciation, and amortisation to INR 10.32 billion in the June quarter. The operating EBITDA margin was 32.5% in the June quarter compared to 32% in the year ago quarter.

The June quarter operating profit was supported by a 3.7% on-year decline in cost of materials consumed to INR 3.96 billion. It was also helped by a moderate increase of 8% on year in purchases of stock-in-trade to INR 3.38 billion, which made up for 14% of its total expenses. The 8% on-year increase in purchases of stock-in-trade was the lowest in six quarters.

Employee benefit expenses, which made up for one-fourth of the total expenses, were up 10% on year at 6.05 billion in Apr-Jun. Other expenses, which had the highest total expenses share of 32%, increased 7.9% on year to INR 7.67 billion.

The company said it incurred research and development expenditure of INR 1.57 billion, or 5% of revenue. It was 16% higher than the year-ago period when the research and development expenses were INR 1.35 billion or 5% of revenue.

Monday, shares of Torrent Pharma closed up 0.5% at INR 3,622.90 on the National Stock Exchange.  End

Edited by Tanima Banerjee

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