Torrent Pharma net profit up 24% to ₹386 cr in Q2

New Delhi: Torrent Pharmaceuticals Ltd on Monday reported a consolidated net profit of ₹386 crore for the September quarter up 24% from a year ago, while revenue rose by 16% from ₹2,291 crore a year earlier to ₹2,660 crore.

Its earnings before interest, taxes, depreciation and amortization (Ebitda) was at ₹825 crore, with 32% ebitda margin. Net profit margin was at 14.5% for the period. The company’s debt to equity ratio remained flat at 0.66x compared to the year ago in the second quarter of FY24, while cash reserves at the end of the quarter stood at ₹538 crore.

The company focusing on specialty drugs reported 18% growth in its Indian operations in Q2, with revenues of ₹1,444 crore, up from ₹1,224 crore a year ago. This growth is attributed to the sustained double-digit expansion in chronic therapies revival in gastro demand, increasing activity in the consumer division, and launch of new products. Its Curatio portfolio witnessed 17% growth, primarily driven by strong performance of key brands.

Operating revenue from its Brazil business reported 36% growth, reaching ₹252 crore in the second quarter of FY24, up from ₹185 crore a year ago, on the back of robust performance of its top brands, product launches, growth in generics, and the positive impact of sales from Q1FY24 spilling into Q2. Revenues in Germany also saw a significant 21% rise, reaching ₹266 crore.

However, revenues from its operations on the US fell 15% over a year ago to ₹248 crore, from ₹292 crore. “Growth was impacted by loss of low margin business and the lack of new launches,” the company said.

During post-results analyst call, Torrent Pharma said it is expecting double-digit growth for its oncology products.

“Our focus will continue to be in deepening presence in branded generic products to maintain growth in Germany and to turn around our US business,” Sanjay Gupta, executive director of international business, Torrent Pharmaceutical Ltd, said during an analyst call. It is also vying for the promoter stake of Cipla and is in talks with financial institutions to secure funds for an all-cash deal. The company, however, said that it does “not comment on market speculations”.

Torrent Pharma increased its research and development spending to ₹132 crore, up 9% from a year ago.