Efforts to improve its profitability, especially for that of the acquired domestic portfolio of Unichem has reaped results for the Ahmedabad-based Torrent Pharmaceuticals Ltd (TPL) in the first quarter of financial year 2019-20. The drug maker's consolidated net profit for the first quarter ended June 30, 2019 jumped 33 per cent to stand at Rs 216 crore as against Rs 163 crore for the corresponding period last year.
TPL, which is among the top five in the Indian Pharmaceuticals Market (IPM) for the therapeutics segment of Cardiovascular (CV), Central Nervous System (CNS), Gastro-intestinal (GI), and Vitamins Minerals Nutritionals (VMN), saw its consolidated revenue rise by 7.5 per cent to stand at Rs 2,042 crore for Q1 of financial year 2019-20.
Among the various markets, while its India business grew by nine per cent year-on-year (YoY) to Rs 907 crore in the first quarter, after a base impact of discontinued products in the previous year of two per cent, TPL's US revenues were up by 13 per cent to Rs 376 crore.
After an initial struggle, Torrent Pharmaceuticals has managed to improve the profitability of Unichem, which it acquired in December 2017, from 18 per cent to more than 30 per cent for the entire fiscal of 2018-19. This is in line with the company’s domestic margins. Analysts have pointed out that the profitability in its annual results earlier was the result of the company’s efforts towards rationalisation — of both manpower and tail-end or overlapping brands.
The first quarter of FY20 saw three abbreviated new drug applications (ANDAs) being filed, with total 34 ANDAs pending approval and 11 tentative approvals being received as on June 30, 2019. TPL's revenues from other markets like Brazil and Germany grew by four per cent and three per cent to stand at Rs 262 crore and Rs 174 crore in Q1 of FY20, respectively.
The company spent Rs 136 crore in R&D in Q1 of FY20 as against Rs 128 crore in Q1 of FY19. TPL continues to be focused on its specialty driven business, productivity improvement, brand building, maintaining high quality manufacturing practices and investments into R&D for a robust future pipeline, the company stated on Tuesday.
A specialty focused company with 75 per cent of its revenue from chronic & sub-chronic therapies, TPL has presence in 40 countries and ranked No. 1 amongst the Indian pharma Companies in Brazil, Germany and Philippines.
TPL has eight manufacturing facilities including seven in India and one in the US, of which five are USFDA approved.