Torrent Pharma posts Q4FY20 PBT of Rs 293 cr, consolidated revenue up 4.69%

On the back of the synergies of the acquired Unichem portfolio, drug maker Torrent Pharmaceuticals Ltd posted a consolidated profit before tax (PBT) of Rs 293 crore for the quarter ended March 30, 2020. In Q4FY19, the company had posted a consolidated loss before tax of Rs 150 crore.

The company saw its total consolidated revenue in Q4FY20 at Rs 1961 crore, up by a marginal 4.69 per cent over Rs 1873 crore in Q4FY19. For the full financial year, while Torrent Pharma posted an over 110 per cent growth in its consolidated PBT at Rs 1187 crore in FY20, up from Rs 562 crore in FY19, its consolidated total revenue grew by 4.28 per cent to Rs 8061 crore in FY20 as against Rs 7730 crore in FY19.

According to Samir Mehta, executive chairman of Torrent Pharma, the company's fourth quarter margins continued to benefit largely from the synergies of the acquired Unichem portfolio, incremental productivity and cost control. "Our focus continues to remain on India, US, Brazil and Germany as our core markets; For the US, remediation work at Dahej and Indrad has progressed as per plan and we expect Germany growth to revive in FY21," said Mehta.

Region-wise, while its domestic India revenues grew by 11 per cent to Rs 840 crore in Q4, adjusted for Covid-19 related supply delays they showed 15 per cent growth, its US revenues rose marginally by 3 per cent to Rs 385 crore in the quarter. On the other hand, the company's Brazil and Germany revenues grew by 5 and 10 per cent to Rs 196 crore and Rs 216 crore, respectively.

Quoting the AIOCD data set, Torrent Pharma said that its Q4 FY20 growth was 16 per cent as against the 10 per cent growth of the Indian pharma market (IPM). The company's India business growth was driven by market share expansion and momentum in high potential launches of Q3 FY20 including Ticagrelor, Vildagliptin and Remogliflozin. Moreover, as of March 31, 2020, MR productivity per month for Torrent Pharma was Rs 7.3 lakhs with MR strength of 4,000. 

For the US market, constant currency sales were $52 million driven by market share gain in existing molecules even as the company had 48 abbreviated new drug applications (ANDAs) pending approval and six tentative approvals received as on March 31, 2020. Brazil market saw constant currency sales grow by 11 per cent to R$119 million, driven by new launches and market share gain. On the other hand, Germany's constant currency sales were Euro 27 million, impacted by certain temporary delays in releasing products due to upgradation of its quality management system, the company stated.

Meanwhile, with the company announcing an interim dividend for FY 2019-20 in Q4 of Rs 32 per equity share (including Rs 15 per equity share as a special dividend), which was paid in March 2020, the Board has not considered any further dividends for FY 2019-20.