On February 2, 2024, Torrent Pharmaceuticals Limited (BSE, NSE: TORNTPHARM) announced its Q3 2023-24 results, with Revenues and Profitability substantially high in a competitive sector and a characteristically weak quarter.
Table of Content
Result Takeaways
As its healthy performance in branded markets forges ahead from the last quarter, Torrent Pharmaceuticals Ltd has recorded growth in the key metrics of Revenue and Profitability in Q3 FY24. Here are the main result highlights of the Company’s Q3 FY24:
- The Company’s Revenues for Q3 FY24 were at ₹2,732 Cr, a rise of 10%.
- The Gross Margin for the Company was at 75%.
- The Operating EBITDA for the quarter was at 32%, reaching ₹869 Cr, a rise of 20%.
- The Net Profit after Tax of the Company for Q3 FY24 was ₹443 Cr, a rise of 52%.
Additional Read: Q3 Results Dashboard
Riding on Success in Diverse Markets
The Company operates in India and other markets overseas, and its Q3 FY24 results reflect the performance of the Pharma major in these too:
India
- The Company’s India business Revenues stood at ₹1,415 Cr, a rise of 12%.
- As per the AIOCD secondary market data, the growth in IPM was 9% for the quarter.
- Torrent Pharmaceuticals has outperformed the domestic market across all focused therapies boosted by resilient new launch performance.
- For YTD, December FY24, Revenues stood at ₹4,286 Cr marking a rise of 15%.
Brazil
- The Revenues for the Brazil market were at ₹312 Cr, a rise of 26%.
- In terms of Constant currency, the Revenues were at R$185 million, increased by 17%.
- According to IQVIA, the market growth for the Company’s quarter was 6.5%. The Company’s four launches supported growth in 2022 and three launches did so in 2023, as well as the performance of leading brands and growth in the business of generics.
- For YTD December FY24, the Revenues stood at ₹754 Cr, a rise of 22%.
Germany
- German business Revenues were at ₹270 Cr, increased by 12%.
- In terms of Constant currency, the Revenues were at Euro 30 million, up by 6%.
- The momentum in growth continues with the improved conversion of existing tenders combined with incremental tender wins.
- For YTD December FY24, Revenues stood at ₹795 Cr, an increase of 18%.
United States
- For the US business, the Revenues were at ₹274 Cr, a decline by 6%.
- Constant currency Revenues were pegged at $33 million, down by 7%.
- Growth in the US business was impacted by the need for more new product launches.
- New product launches for the US business are set to commence from Q1 of the fiscal year 2024-25.
- At the close of Q3 FY24, 40 ANDAs were pending USFDA approval, and 3 were granted tentative approvals.
- During the quarter, 2 ANDAs were given approval & 1 ANDA was freshly filed.
- For YTD December FY24, Revenues stood at ₹815 Cr, down by 8%.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Crore except where indicated otherwise):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 | YoY Change % |
| Revenues | 2,732 | 2,491 | 10% |
| Gross Margins | 2,035 | 1,761 | 16% |
| Op. EBITDA | 869 | 724 | 20% |
| Profit After Tax | 443 | 292 | 52% |
| R&D Spends | 127 | 123 | 3% |
Additional Check: Torrent Pharmaceuticals Share Price
Q3 FY24 Result Summary
Torrent Pharma, a key Pharma player, boasts annual revenues of over ₹9,600 crores, and is the flagship pharmaceutical arm of the Torrent Group, with group revenues exceeding ~₹37,000 crores. Ranked at #5 in the Indian Pharmaceuticals Sector, it is one of the Top 5 firms in the therapeutics areas of Gastro Intestinal, Cardiovascular, Central Nervous System, Vitamins Minerals Nutritionals, and
Cosmo-Dermatology. Focusing on specialist therapies, the Company has ~75% of its revenues generated in India sourced from chronic & sub- chronic therapies. The Company has an impressive presence in more than 50 countries around the globe and has earned a #1 ranking among Indian Pharma firms in Germany and Brazil. Torrent Pharma has 8 manufacturing plants, of which 5 are approved by the USFDA. With R&D at the core of its growth in domestic & international markets, the Company has invested substantially in R&D capabilities with above-par R&D infrastructure, employing about 750 scientists.
With the drugmaker’s Net Profit surging to ₹443 crores in Q3 FY24, the Company has surpassed its market expectations and seen growth in domestic markets as well as traction in its international operations. Sales have risen in Indian shores, as well as in the Brazil business, so this has given a boost to the success of Q3. As the present Chairman steps down from the Company (effective April 2024), the Company is well-positioned to scale new heights in the concluding quarter of 2024, and beyond, making a mark in the Pharma industry.
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Source: Torrent Pharmaceuticals Ltd Press Release on BSE
