Torrent Pharma slips 6% on profit-booking; outlook remains a concern

Unlike peers, Torrent Pharma guided for a relatively moderate outlook across geographies, note analysts at Emkay Global Financial Services.

Shares of Torrent Pharmaceuticals slipped 6 per cent to Rs 2,420 on the BSE on Wednesday on profit-booking after the company’s profit before interest, taxes, depreciation, and exceptional item (EBITDA) for the quarter ended March 31, 2020 (Q4FY20) increased by 26 per cent to Rs 562 crore against Rs 486 crore during the corresponding quarter last year. EBITDA margins expanded 300 basis points (bps) to 29 per cent from 26 per cent in Q4FY19.

The management said Q4 margins expansion was largely from the synergies of the acquired Unichem portfolio, incremental productivity, and cost control. Revenues; however, grew in single digit