Torrent Pharmaceuticals Q2 Results: Profit Up 17% But Misses Estimates
Revenue was up 8.6% to Rs 2,889 crore in the September quarter.
Torrent Pharmaceuticals Ltd.'s consolidated net profit rose 17% in the second quarter of the current financial year, missing analysts' estimates.
The company posted a net profit of Rs 453 crore in the quarter ended September in comparison to Rs 353 crore in the year-ago period, according to an exchange filing on Friday. Analysts tracked by Bloomberg had estimated a profit of Rs 494 crore.
Torrent Q2 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 8.6% to Rs 2,889 crore versus Rs 2,660 crore (Bloomberg estimate: Rs 2,971 crore).
Ebitda rises 14% to Rs 939 crore versus Rs 825 crore (Estimate: Rs 959 crore).
Margin expands 140 basis points to 32.5% versus 31% (Estimate: 32.30%).
Net profit up 17% to Rs 453 crore versus Rs 386 crore (Estimate: Rs 494 crore).
Business Highlights
Insulin revenue was impacted this quarter due to a scheduled shutdown taken in August for maintenance activities. The facility will be released for manufacturing in December. Shortfall is significantly planned to be recovered in the fourth quarter and consequently, there will not be any impact on a full-year basis.
Adjusted for the above, the underlying revenue growth for the quarter is 10%, with operating Ebitda growth at 16%.
Other Highlights
India
India revenue at Rs 1,632 crore was up 13%, led by outperformance in focus therapies.
As per the All Indian Origin Chemists & Distributors, secondary market data, IPM growth for the quarter was 8%.
Torrent's chronic business grew at 14% versus Indian pharma growth of 9%, driven by strong revival in cardiac divisions and continued traction in anti-diabetes new launches.
On a moving-annual-turnover basis, Torrent has outperformed the market across focused therapies aided by strong new launch performance. It has 21 brands in the Top 500 brands in the IPM.
For the first half of the current fiscal, revenue was Rs 3,267 crore, up by 14%
Brazil
Brazil revenue at Rs 263 crore, up 4%.
As per Iqvia, Torrent growth was at 8% vs market growth of 8% in quarter to date till August.
Growth was aided by performance of top brands, new launches and growth in the generic segment.
For H1 FY25, revenue was Rs 459 crore, up 4% (Constant currency revenue: R$ 297 million, up by 13%)
Germany
Germany revenue at Rs 288 crore, up by 8%.
Constant currency revenue at €31 million, up 6%.
Growth momentum continues with incremental tender wins since the last five quarters.
For H1 FY25, revenue was Rs 572 crore, up 9% (Constant currency revenue: €63 million, up 8%)
United States
US business revenue at Rs 268 crore, up 8%.
Constant currency revenue at $32 million, up 7%.
Sequential quarter sales were at a similar level.
For H1 FY25, revenue was Rs 527 crore, down 3%. Constant-currency revenue: $63 million, down by 4%.
Adjusted for one-off income in H1 23–24, constant currency declined 2%.
Shares of Torrent Pharmaceuticals closed 3.36% higher at Rs 3,432.85 apiece on the NSE, compared to a 0.9% decline in the benchmark Nifty 50.
