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Torrent Pharma reports Q4 net loss of Rs 152 crore, cites drug recall

Pharma company says it faced one-time impact of the recall hypertension drug in the US market.

drugs, medicines, USFDA

Ahmedabad-based Torrent Pharmaceuticals Ltd. (TPL) reported on Monday a consolidated net loss of Rs 152 crore for the March quarter compared to a net profit of Rs 228 crore for the corresponding period last year. 
 
The company said its Q4 bottom line came down because of a impairment provision of Rs 217 crore on certain intangible assets and goodwill recognised as part of acquisition of Bio-Pharm Inc. in the US as well product recall charges of Rs 140 core in the US. 

Torrent recalled over 1.078 million bottles of Losartan Potassium, a hypertension treatment tablet, in the US and Puerto Rico, according to a report by USA's Food and Drug Administration.

Torrent's consolidated total income increased by seven per cent to stand at Rs 1873 crore in Q4, up from Rs 1750 crore in Q4 of FY'18. On the other hand, its earnings before interest, tax, depreciation and amortization (EBITDA) rose by 20 per cent on a year-on-year (YoY) basis to Rs 486 crore, even as its EBITDA margin stood at 26 per cent in Q4 of FY'18. For the full year, Torrent Pharma's EBITDA grew 23 per cent to Rs 2,025 crore, with an EBITDA margin of 26 per cent.

Revenue from its US business, including that from acquired businesses grew by 21 per cent on a year-on-year (YoY) basis to stand at Rs 372 crore while its India business grew by nine per cent to Rs 754 crore during Q4 of FY'19. As on March 31, 2019, Torrent Pharma had 32 abbreviated new drug approvals (ANDAs) pending approval and had bagged 10 tentative approvals even as it filed 5 ANDAs during the fourth quarter.

Internationally, while TPL's Germany revenues grew by two per cent to Rs 239 in the quarter, that from Brazil fell by four per cent to close at Rs 205 crore. On Monday, the company also declared a final dividend of 80 per cent at Rs 4 per share. 

For the entire fiscal year of 2018-19, Torrent Pharma saw its consolidated net profit fall by 35.69 per cent to Rs 436 crore as against Rs 678 crores in FY'18. The company attributed the fall to impact from higher amortization and impairment provision on acquired intangible assets from the US-based BioPharm, apart from one time impact of product recall in the US.