Torrent Pharma Q1 PBT up 44% to Rs 402 cr, income rises marginally

Domestic and US market revenues more or less flat, 20% drop in Brazilian revenues

Despite challenges posed by Covid-19 pandemic and lockdown, Torrent Pharmaceuticals Ltd. (TPL) saw its consolidated profit before tax (PBT) rise 44.08 per cent for first quarter ended June 30, 2020 to stand at Rs 402 crore. The company's PBT in corresponding quarter last year stood at Rs 279 crore. 

The company's consolidated total income, however, rose marginally by 0.88 per cent from Rs 2,042 crore in Q1 of previous fiscal 2019-20 to Rs 2,060 crore in Q1 of FY 2020-21. In terms of markets, while its India revenues grew marginally by two per cent on a year-on-year (YoY) basis to Rs 925 crore in Q1FY21, up from Rs 907 crore in Q1 of FY20, its US revenues fell by one per cent to stand at Rs 373 crore in the said quarter as against Rs 376 crore in Q1 of previous fiscal.

On the other hand, its Brazil revenues fell by 20 per cent in Q1 of FY21 at Rs 140 crore, down from Rs 174 crore in corresponding quarter last year.

According to Samir Mehta, executive chairman, Torrent Pharma, the first quarter of current fiscal witnessed challenges due to Covid-19 hampering industry growth in global markets. However, most of the company's focus markets have seen a steady recovery since June.

"In India, despite a challenging market environment, Torrent was able to sustain its base revenue of the previous year with the chronic and sub‐chronic portfolio gaining market share. Expenses were lower during the quarter owing to the lockdown which aided margins. We remain optimistic about a gradual recovery in India, Brazil, US and Germany in the coming quarters," Mehta commented on the results.

 

As per AIOCD, Q1FY21 growth for the company's India market was one per cent as compared to a fall of six per cent for the Indian Pharmaceuticals Market (IPM). While the industry growth was negatively impacted due to Covid‐19, Torrent’s performance was aided by high chronicity of its portfolio, the company stated. Moreover, as of June 30, 2020, per-head MR (medical representative) productivity stood Rs 7.7 lakh, with an MR strength of 4,000.

Torrent Pharma's US sales were impacted by price erosion on base portfolio and absence of new launches, with constant currency sales standing at $47 million in Q1 of FY21. As on June 30, 2020, 47 abbreviated new drug applications (ANDAs) were pending approval while six tentative approvals were received, apart from one ANDA being filed during the quarter.

Constant currency sales in Brazil stood at $96 million at a growth of one per cent. In Brazil, while industry growth was impacted due absence of patient-physician consultations, Torrent was able to maintain its base revenue, due to chronic portfolio and market share gain, it stated.

First-quarter revenues in Germany, which forms one of the top four markets for Torrent Pharma fell by six per cent YoY to stand at Rs 246 crore as compared to Rs 262 crore in corresponding quarter last year.

Meanwhile, its research and development (R&D) spend also fell YoY by 21 per cent to stand at Rs 108 crore or five per cent of revenue in Q1 of FY21 as against Rs 136 crore or seven per cent of revenues in Q1 of FY20.