Torrent Pharma, a Rs.6,500 crore plus pharma major from Ahmedabad, has suffered setback during the first quarter ended June 2016 and its consolidated net profit declined sharply by 55.1 per cent to Rs.292 crore from Rs.650 crore in the corresponding period of last year. Its consolidated net sales also declined by 20.1 per cent to Rs.1,507 crore from Rs.1,886 crore as it launched new products in US market during the same quarter of last year. With lower profit, its EPS declined to Rs.17.28 from Rs.38.40 in the last period.
Torrent's sales of formulations in domestic market increased only by 2.6 per cent to Rs.504 crore from Rs.491 crore. Discontinuance of certain promotional schemes and hygiene initiatives has impacted the business in short term. However, the company hopes better performance in the long term.
Its US business declined sharply by 51.1 per cent to Rs.434 crore from Rs.888 crore in the similar quarter of last year as the company launched new product which had limited competition. US revenues contributed 28 per cent in total revenues during June 2016 quarter as against 45.6 per cent in the last period. However, its Brazilian business improved by 21 per cent to Rs.167 crore from Rs.138 crore and German sales increased by 19.1 per cent to Rs.187 crore from Rs.157 crore.
The company has entered into a binding agreement to acquire the Vizag API manufacturing unit of Hyderabad based Glochem Industries Ltd as a going concern on a slump sale basis. The transaction is subject to satisfaction of various condition precedent by both the parties. The company has commenced commercial production and dispatches from its Dahej SEZ facility in Gujarat from April 2016.
Torrent's standalone net sales declined by 29.2 per cent to Rs.1,282 crore during June 2016 quarter from Rs.1,810 crore in the same quarter of last year. Its standalone net profit declined by 58.3 per cent to Rs.332 crore from Rs.797 crore.