ICICI Securities research report on Torrent Pharmaceuticals
Torrent Pharma’s (Torrent) Q4FY20 performance was largely in-line with estimates aided by strong India growth and controlled costs. Consolidated revenue grew 4.8% YoY and EBITDA margin improved 270/70bps YoY/QoQ to 28.2% (I-Sec: 26.8%). Adjusted PAT more than doubled to Rs2.6bn (I-Sec: Rs2.2bn) driven by better margin and lower tax rate. US sales remained flat QoQ at US$52mn vs estimated US$51mn despite the company having OAI status on two important plants and no new approvals.
The growth in India business was strong at 11.4%, recovered well after three quarters of single digit growth as high base normalised and volume growth improved from recent launches including Ticagrelor, Vildagliptin, Remogliflozin etc. Maintain HOLD.
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