Torrent Pharma Ltd (TPL), an Ahmedabad based Rs 500 crore plus pharma company, notched a net profit growth of 27 per cent during the year ended March 2004. Its net profit touched to Rs 65.77 crore from Rs 51.77 crore in the previous year. The gross sales for the year reached at Rs 508 crore. Its net sales after excise and sales tax increased by 3 per cent to Rs 460.58 crore from Rs 447.24 crore in the preceding year. The board of directors maintained equity dividend at 80 per cent for the year 2003-04.
The total expenditure was slightly lower at Rs 357.81 crore as compared to Rs 361.27 crore in the previous year. The cost of raw material and purchase of traded goods increased to Rs 194.57 crore from Rs 149.50 crore. The staff cost increased to Rs 40.74 core from Rs 36.07 crore. The company incurred R&D expenditure of Rs 29.48 crore for the year 2003-04 as compared to Rs 26.01 crore in the previous year.
The domestic formulations sales affected during the fourth quarter of current year mainly due to postponement of purchase by the trade channel on account of uncertainties arising out of implementation of VAT in lieu of sales tax by the State Government. During the third quarter of the current year, TPL has begun implementation of an Enterprise Resource Planning (ERP) project and has procured software system worth Rs 3.63 crore. The process of implementation involves customizing the software to meet the various business process requirements.
TPL's investments in wholly owned subsidiaries Torrent Do Brasil Ltda Brazil and Torrent Pharma GmbH, Germany increased to Rs 0.56 crore and Rs 13.30 crore respectively during the year 2003-04. The company incorporated Torrent Pharma Inc, a wholly owned subsidiary in USA with an initial capital investment of Rs 0.45 crore. TPL has repaid Rs 4 crore of long-term borrowings