Torrent Pharmaceuticals Ltd reported a significant 23.7% year-on-year increase in its net profit for the second quarter ending September 30, 2023, amounting to ₹386 crore. In comparison, the drug firm announced a net profit of ₹312 crore during the same period last year, according to a company regulatory filing.
Revenue-wise, the firm saw a 16.1% uptick, generating ₹2,660 crore this quarter, against the ₹2,291 crore reported in the corresponding period of the preceding fiscal year.
At the operating level, the company’s EBITDA, which is earnings before interest, tax, depreciation, and amortization, surged by 36.2%, settling at ₹825 crore. This figure stands in contrast to the ₹679 crore in the corresponding period of the previous fiscal year. The EBITDA margin for the current reporting quarter was 31%, a slight increase from the 29.6% reported in the previous year’s corresponding period.
In the domestic market, Torrent Pharmaceuticals highlighted a robust 18% growth in its revenue, tallying at ₹1,444 crore. This growth has been largely credited to the success of the Curatio portfolio, which itself expanded by 17%, backed mainly by the top-focus brands. For the first six months of the fiscal year, the firm’s revenue reached ₹2,870 crore, indicating a strong 16% growth.
The overseas markets provided mixed results for the company. In Brazil, revenue touched ₹252 crore, marking a 36% surge, although this was influenced by sales spillover from the previous quarter. Meanwhile, the German market exhibited positive momentum, with revenues of ₹266 crore, translating to a 21% growth.
Conversely, the US market posed challenges for the company, showing a 15% dip in revenue at ₹248 crore. The company attributed this decline to the loss of some low-margin business and the absence of new product launches. However, the silver lining in the US was the Dahej facility obtaining an Establishment Inspection Report (EIR), which suggests potential new product approvals on the horizon. As of the end of September 2023, the company had a total of 41 Abbreviated New Drug Applications (ANDAs) waiting for approval from the US Food and Drug Administration (USFDA).
After the release of these results, Torrent Pharmaceuticals Ltd’s shares closed at ₹1,876.95 on the BSE, showing a dip by ₹12.00, or 0.64%.