Torrent Pharmaceuticals, a Rs.1,830 crore plus pharma company from Ahmedabad, has managed to posts small growth in profits during the second quarter ended September 2010 despite robust growth in domestic formulation business. Its consolidated net profit went up by 3 per cent to Rs.76.19 crore from Rs.73.99 crore in the corresponding period of last year. Its net sales improved by 21.4 per cent to Rs.551.92 crore from Rs.454.48 crore.

Its domestic formulation business increased by 22 per cent to Rs.221 crore during the quarter under review from Rs.181.28 crore. It recently expanded its presence in extra urban markets and is stabilizing its recent entry into gynecology segment. Sales outside India jumped by 21 per cent to Rs.284 crore. Operations in Brazil registered impressive performance with sales growth of 15 per cent revenues moving up from Rs.87 crore to Rs.100 core. US operations registered strong performance with growth of 50 per cent, recording sales of Rs.31 crore. Germany-based Heumann operations recorded sales of Rs.72 crore with growth of 18 per cent. The sales in Europe (other than Heumann), Russia & CIS and Rest of the world increased by 23 per cent to Rs.80 crore from Rs.65 crore in the similar period of last year. Torrent has recently entered the Mexican market and has planned to enter the UK & Romanian markets shortly. Its income from contract manufacturing went up by 15.6 per cent to Rs.56.47 crore from R. 48.84 crore.

Due in investment in expansion of domestic and international put some pressure on operating profits and remained stagnant at Rs.118 crore. Its R&D expenditure increased by 26.7 per cent to Rs.32.89 crore from Rs.25.97 crore and its employees cost went up by 29.4 per cent to Rs.99.08 crore from Rs.76.60 crore. The R&D expenditure as percentage of sales worked out to 6 per cent as against 5.7 per cent in the the last period.

The company filed 51 ANDAs and 20 DMFs with US FDA as part of its US operations, of which approvals for 24 ANDAs have been received. Significant investment in product development is being made to support the build-up of US, Europe and Brazilian operations.

For the first half ended September 2010, Torrents' net sales increased by 17.1 per cent to Rs.1077 crore from Rs.920 crore in the corresponding period of last year. Its net profit has taken a quantum jump of 68.8 per cent to Rs.150.41 crore from Rs.89 11 crore with lower interest burden and tax provision.