Torrent Pharmaceuticals (TPL) performed well during the first quarter ended June 2004 on account of significant rise in exports and better working of its Brazilian subsidiary. Its exports earnings improved by 66 per cent to Rs 10.11 crore from Rs 16.83 crore. Its net profit moved up by 11 per cent to Rs 23.12 crore from Rs 20.89 crore in the corresponding period of last year. The company's standalone sales increased by 7 per cent to Rs 120.66 crore. The earning per share worked out Rs 10.93 for the first quarter.
The core domestic formulations business grew by 11 per cent from Rs 77.62 crore to Rs 85.91 crore during the first quarter ended June 2004. TPL continued its growth in the focused therapeutic areas of Cardio-vascular (CV) and Central Nervous System (CNS). Newer segments like Oral Anti-Diabetics (OAD) and Pain Management showed significant growth. The recently launched major products, Modlip, Rozucor, Ecogat and Valz-BCD have seen good uptake.
Exports to traditional markets of Asia and Africa witnessed a substantial increase during the quarter. Global consolidated export sales moved up sharply by 109 per cent to Rs 25.49 crore on the back of a sales ramp-up by the subsidiary in Brazil. TPL's consolidated sales increased by 12 per cent due to smart improvement in its Brazilian subsidiary.
Operating Profit (PBIDT) for Q1 touched to Rs 33.56 crore, growing by 4 per cent. Lower growth in operating profit is on account of higher R&D expenditure in regulated markets (US & Europe), increase in sales promotion expenses in overseas markets and increase in field staff in domestic market.
The product development programme for international generics markets of US and Europe is progressing well. The research activity also received a boost on account of company entering into license agreement with Novartis Pharma AG, Switzerland for its AGE Breaker molecule in July 04. It will entitle the company to an upfront fee of USD 3 million and further milestone payments as the molecule passes through various phases of clinical development, regulatory approvals and ultimate commercialization. The revenues have not been reflected in the Q1 results.
The company's ERP Project is expected to provide significant long term benefits to the company. The progress of two major projects started last year, viz. up-gradation of API facilities at existing plant at Chhatral and new formulation plant at Himachal Pradesh, are proceeding as planned. The company is planning further investments at its R&D facilities to augment its readiness for regulated markets of US and Europe.