Torrent Pharmaceuticals, a Rs.6,540 crore plus pharma giant from Gujarat, has received major setback during the third quarter ended December 2016 due to lower sales in US. Its consolidated net profit declined by 21 per cent to Rs.229 crore from Rs.290 crore in the corresponding period of last year. EBDITA also moved down sharply by 45.6 per cent to Rs.366 crore from Rs.673 crore. Net sales declined by 6.9 per cent to Rs.1,413 crore from Rs.1,518 crore. With lower net profit, EPS declined to Rs.13.47 from Rs.17.19 in the last period. Exceptional items during last year’s quarter represents write off of goodwill of of Rs.194 crore arising on account of amalgamation of Zyg Pharma Pvt Ltd with the company.
The Board of Director has declared interim equity dividend of 200 per cent for the year 2016-17. The aggregate amount of interim equity dividend proposed to be distributed is Rs.203.67 crore including dividend distribution tax of Rs.34.45 crore.
Its domestic formulation business increased by 12 per cent to Rs.503 crore from Rs.449 crore. However its US sales declined sharply 44.4 per cent to Rs.310 crore from Rs.558 crore. Previous period include exceptional revenues, primarily on account of the launch of a new product which had limited competition. German sales improved by 24 per cent to Rs.203 crore and Brazilian sales moved up by 35 per cent to Rs.159 crore.
For the nine months ended December 2016, Torrent’s consolidated net sales declined by 14.4 per cent to Rs.4,432 crore from Rs.5,063 crore in the similar period of last year. Its net profit declined by 49.8 per cent to Rs.728 crore from Rs.1,449 crore. EPS declined to Rs.43.01 crore from Rs.85.60 crore. R&D expenditure declined by 27.9 per cent to Rs.124 crore from Rs.172 crore. It filed 4 ANDAs during December quarter.
The US sales during nine months declined by 50.6 per cent to Rs.1,065 crore from Rs.2,158 crore. Its sales in India increased by 9 per cent to Rs.1,509 crore. Discontinuance of certain promotional schemes and hygiene initiatives has impacted the business in short term however it will have positive impact in long term.