On October 23, 2023: Torrent Pharmaceuticals Ltd (BSE, NSE: TORNTPHARM) announced its Q2 2023-24 financial results, with revenues on the uptick and a generally positive outlook for the company as branded markets continually deliver robust growth. German recovery continues to be on track.
Table of Content
Key Highlights – India
Here are the key highlights of Q2 of Torrent Pharma regarding the Indian market:
- The India Revenue stood at the highest among revenues out of all countries where the company has a presence. India Revenue for Q2 was at ₹1,444 crore and this was a growth of 18%.
- IPM growth for Q2 was at 4%, according to AIOCD secondary market data.
- The outperformance of the market was due to consistent and continuous double-digit growth with regard to chronic therapies, traction in the consumer division, a revival in gastro demand, and brand-new launches of therapies.
- The Curatio Portfolio witnessed growth of 17% due to healthy development in leading focused brands.
Additional Read: Q2 Results Dashboard
Main Highlights – Other Countries
Here are the main highlights of Torrent Pharmaceuticals Ltd Q2 results concerning countries other than India:
- As far as Brazil goes, the Revenue was up by 36% and stood at ₹252 crore. In terms of percentages, this was the highest market Revenue growth seen. The Constant Currency Revenue was at R$149 million, a rise of 23%. The Revenues of Q2 in this respect, reflect the effect of a spillover of sales from Q1. The growth in this market was a result of top brand performance, growth in the segment of generic drugs, and new launches.
- In terms of German Revenue, the company reported that revenue had surged by a healthy 21% and stood at ₹266 crore. The Constant Currency Revenue was at €30 million translating to an 8% increase. The momentum of growth continues with fresh tender wins and enhanced conversion regarding existing tenders.
- With regard to United States Revenue, the figure stood at ₹248 crore, a decrease of 15%. Correspondingly, the Constant Currency Revenue was at $30 million, decreased by 18%. Here, growth was affected by the loss of low-margin business and a clear lack of any new launches. However, the Dahej facility has recently received EIR and this will lead to approvals for new products.
Overall Results – Profitability and Revenue
The following details shed some light on the Q2 results in general:
- The overall Revenue stands at ₹2,660 crore which is a rise of 16%.
- Gross Margins are at 75%, while Op. EBITDA margins stand at 31%.
- Op. EBITDA is at ₹825 crore which is an increase of 22%.
- For Q2, the Net Profit After Tax is at ₹386 crore which is an increase of 24%.
Also Read: Torrent Pharmaceuticals Share Price
Approvals Pending and Received
The following is the status of certain approvals pending and those approved during Q2:
- The Dahej facility has received EIR, resulting in the way forward for fresh product approvals.
- By the end of Q2 (30 September 2023), 41 ANDAS awaited approval by the United States Federal Drug Administration (USFDA). Only 3 tentative approvals were achieved. In Q2, 1 ANDA received approval.
Financial Results Summary
| Metrics | Q2 FY2023-24₹ crore | % | Q2 FY2022-23₹ crore | % | YoY % |
| Revenues | 2,660 | 2,291 | 16% | ||
| Gross Profit | 2,000 | 75% | 1,650 | 72% | 21% |
| Op. EBITDA | 825 | 31% | 679 | 30% | 22% |
| PAT | 386 | 15% | 312 | 14% | 24% |
| R&D Spend | 132 | 5% | 121 | 5% | 9% |
About Torrent Pharmaceuticals Ltd
In the words of the management of Torrent Pharma, the frontrunner enterprise of the Torrent Group, “Torrent Pharmaceuticals is not just healthcare, it is lifecare”. The company is one of the leaders in the Indian pharmaceutical sector. A leader in the initiation of the concept of exclusive marketing in the country, it is ranked among the leaders in the therapeutic areas of the central nervous system (CNS), cardiovascular (CV), gastrointestinal (GI), and women’s healthcare (WHC). The company also has a relevant presence in the fields of pain management, oncology, gynaecology, and anti-infectives.
Torrent Pharmaceuticals’ competitive edge comes from its top-notch manufacturing plants, advanced R&D operations, widespread Indian network, and extensive presence in more than 40 countries. Torrent Pharma has been further strengthened due to its acquisition of Elder Pharma in 2013, Zyg Pharma in 2015, the API facility of Glochem Industries in 2016, certain female healthcare brands of Novartis, the Indian business of Unichem in 2017, and Curatio in 2022. Additionally, the brand has expanded its global presence by the commencement of acquisitions like that of Heumann from Pfizer (2005) and ANDA of Minocycline from Ranbaxy in 2015. Furthermore, Torrent Pharmaceuticals made the acquisition of Bio-Pharm, a Pennsylvania, USA-based OTC and generic pharmaceutical company.
Source:
https://torrentpharma.com/index.php/investors/financial?fy=2023-24
