Ahmedabad-based Torrent Pharmaceuticals Ltd, has achieved satisfactory performance during the second quarter ended September 2009 on account of higher sales volumes both in Domestic & International business, higher licensing income and lower foreign exchange losses contributed to growth in profits. Net profit (PAT) of Rs 74 crore was up 54 per cent from Rs 48 crore during the same period last year. As in Q1, the company has not recognized MAT credit entitlement asset in the current quarter. Its Q2 global sales stood at Rs 465 crore, up by 16 per cent from Rs 400 crore of the comparable quarter, on the back of healthy growth across all territories.
The domestic formulation business recorded sales of Rs 181 crore, growing 15 per cent. Sales outside India were up 14 per cent at Rs 234 crore. Operations in Brazil registered quarterly sales growth of 2 per cent, with revenues growing from Rs 85 crore to Rs 87 crore. Germany-based Heumann operations clocked sales of Rs 61 crore growing 9 per cent. US operations registered sales of Rs 21 crore against Rs 5 crore in the comparable quarter. Europe (other than Heumann), Russia & CIS and Rest of the world operations grew 11 per cent with sales of Rs 65 crore rising from Rs 59 crore in comparable quarter.
Operating profits (PBDIT) for the quarter grew 83 per cent at Rs 118 crore compared to Rs 65 crore in the corresponding quarter last year. The comparable quarter includes Rs 5 crore towards MAT credit entitlement. On a MAT adjusted basis, the PAT was up 72 per cent.
For first half ended September 2009, the sales increased 19 per cent to Rs 939 crore compared with Rs 788 crore for the corresponding first half last year. The sales outside India at Rs 459 crore reflect growth of 20 per cent. PBDIT for H1 at Rs 215 crore was 62 per cent higher compared to Rs 133 crore in the previous period. PAT for H1 stood at Rs 89 crore against Rs 98 crore during the previous period. During the Q1 of the current year, in view of changes the Income-tax Act, 1961 and other relevant factors, the company reviewed realisability of MAT credit entitlement asset created in prior years, & wrote-off the MAT credit entitlement of Rs 53 crore. No further MAT credit entitlement asset has been recognized in the current year. Adjusted for MAT in both the periods, PAT grew by 63 per cent.
At the end of Q2, the company had filed 37 ANDAs and 17 DMFs with US FDA as part of its US operations, of which approvals for 11 ANDAs have been received till date. Significant investment in product development is being made to support the build-up of US, Brazil and European operations. During H1 total revenue expenditure on R&D was 6.6 per cent (previous H1 6.9 per cent) of consolidated net sales and operating income.
Company plans to build a new formulation and bulk drug manufacturing unit in Dahez SEZ, south Gujarat to meet the growing needs of regulated markets. Construction activity for a new formulation manufacturing unit at Sikkim is progressing well, in line with the plans. The expansion of API and formulation capacities at Chatral initiated earlier, are also progressing satisfactorily.