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Last Updated : Aug 02, 2018 07:02 PM IST | Source:

Torrent Pharma Q1 profit drops 13% to Rs 162 cr on higher amortisation, finance costs

Torrent Pharma bought domestic formulation business of Unichem Laboratories Rs 3600 crore in December 2017.

Viswanath Pilla @viswanath_pilla
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Moneycontrol News

Torrent Pharma Thursday reported a 13 percent drop in Q1 net profit to Rs 162 crore weighed down by an amortisation impact of the branded business of Unichem Laboratories, and lower foreign exchange gains.

The finance cost rose 33 percent to Rs 122 crore on year-on-year (YoY) basis.

The drug maker reported Rs 188 crore net profit in the corresponding period of previous year.

Total revenues rose 37 percent to Rs 1,899 crore in Q1FY19, compared to previous year's Rs 1,467 crore.

Torrent said it's focusing on the integration of Unichem and Bio-Pharma, reduce costs, and improve R&D productivity.

The drug maker plans to launch 15 abbreviated new drug applications (ANDAs) in the US in FY19.

Torrent Pharma bought domestic formulation business of Unichem Laboratories for Rs 3,600 crore in December 2017 and US-based generic pharmaceuticals and OTC company Bio-Pharm in January this year for an undisclosed sum.

The Q1FY19 revenues include revenues from the branded business of Unichem and Bio-Pharm.

The EBITDA margins in Q1FY19 stood at 27 percent.

The research and development spending during the Q1 FY19 rose 27 percent to Rs 128 crores on YoY basis.

India revenues jumped 79 percent of Rs 830 crores for Q1FY19 compared Rs 464 crores for the same period last year due to low base on account of supply chain disruption caused by GST roll out in Q1FY18.

The US business recorded revenues of Rs 334 crores for Q1FY19 versus Rs 272 crores for the same period last year, registering 23 percent growth.

The June quarter revenues include liquid and suppository manufacturing facilities acquired during January 2018.

During the current period, revenues got impacted due to continued price erosion.

The company said it has filed two abbreviated new drug applications (ANDAs) during the quarter. The company has 5 tentative approvals and 36 ANDAs are pending for approval as on June 30.

German business grew 32 percent to Rs 251 crores for Q1 FY19 boosted by the launch of new products.

Sales from Brazil dropped 11 percent to Rs 169 crores on YoY basis due to foreign currency revenues remaining static.

Shares of Torrent dropped 0.14 percent to close at Rs 1522.70 on BSE, while the benchmark Sensex declined 0.95 percent to end 37,165.16 points.
First Published on Aug 2, 2018 07:02 pm
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