Torrent Pharma Q2 PAT up just 2% to Rs 316 cr on drop in US sales

Overall revenues up 6% YoY, while those in US dropped by as much as 13%

Dragged by a fall in its US sales, Torrent Pharma Ltd. saw its profit after tax (PAT) for the second quarter ended September 30, 2021 rise marginally by two per cent on a year-on-year (YoY) basis to stand at Rs 316 crore for the current financial year 2021-22. Last year, the company had registered a PAT of Rs 310 crore for Q2 of financial year 2020-21.

The company's revenues grew by six per cent YoY to Rs 2,137 crore in Q2FY22, from Rs 2,017 crore in Q2FY21. In terms of geographies, while its India business grew by 13 per cent to Rs 1,087 crore during the quarter, its US revenues were down by 13 per cent to Rs 284 crore YoY.

Quoting secondary market data (AIOCD), Torrent said that its Q2 FY'22 growth for India was 19 per cent as compared to 15 per cent growth of the Indian Pharmaceutical Market (IPM). Apparently, Torrent outperformed the market in all its key therapies during the quarter.

Moreover, the company's MR productivity for the quarter was Rs 9.9 lakhs with an MR strength of 3,600.

Torrent Pharma's US sales were lower due to price erosion in the base business and lack of new approvals pending re-inspection of facilities.

However, as on September 30, some 53 abbreviated new drug applications (ANDAs) filed by Torrent Pharma were pending approval with USFDA and seven tentative approvals were received. During the quarter, the firm had one ANDA approved.

Among other geographies, while Brazil revenues were up by 21 per cent YoY to Rs 156 crore, sales in Germany were down four per cent to Rs 251 crore. Brazil BGx market growth at 10 per cent during the quarter was driven by momentum in the large brands combined with the strong launch of two new products.

Germany revenue growth during the quarter was mainly impacted due to covid induced supply delays and inventory normalisation led by customer consolidation at market place.

Meanwhile, Torrent Pharma spent Rs 130 crore for research and development (R&D) during the quarter, posting a nine per cent YoY growth over last year's second quarter R&D spend of Rs 119 crore.