Torrent Pharma, a Rs.5,700 crore plus pharma major from Gujarat, has posted lower net profit of Rs.204 crore during the second quarter ended September 2017 as against Rs.207 crore in the corresponding period of last year as its net sales also declined to Rs.1,401 crore from Rs.1406 crore. EPS declined to Rs.10.7 from Rs.12.25 in the last period.
Torrent scrip declined sharply by Rs.37.7 on BSE yesterday and closed at Rs.1,268.65. The scrip touched to its yearly highest level at Rs.1,572 on March 31, 2017.
Its domestic sales increased by 22 per cent to Rs.607 crore from Rs.496 crore. Previous quarter sales were impacted due to GST implementation. Its Brazil sales declined to to Rs.120 crore from Rs.157 crore. During the first quarter, one time charge taken for near expiry inventory and additional discounts to distribution. Its US sales declined by 20.8 per cent to Rs.255 crore from Rs.322 crore in the similar period of last year. Current period revenues got impacted due to continued price erosion and customer consolidation. It filed 2 ANDAs and it received 3 tentative approvals. Currently, 29 ANDAs are pending approvals. Its sales in Germany moved up by 19 per cent to Rs.221 crore from Rs.186 crore.
For the first half ended September 2017, Torrent’s net sales declined by 5.8 per cent to Rs.2,749 crore from Rs.2,919 crore. Its net profit declined by 21.4 per cent to Rs.392 crore from Rs.499 crore. EPS worked out to Rs.23.15 as against Rs.29.54 in the last period. Its sales in Brazil and USA declined during first half.
The company is acquiring Unichem Laboratories’ branded business of India and Nepal for a consideration of Rs.3,600 crore. The acquisition will be funded through mix of internal accruals and bank borrowings.
Torrent pharma net declines marginally
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