Ind-Ra revises Torrent Pharma’s outlook to Positive; Affirms ‘AA’ credit rating

The Positive outlook reflects over 200bp growth outperformance by Torrent’s India business vs the Indian pharma market (IPM) since FY19.

May 07, 2021 12:05 IST India Infoline News Service

India Ratings and Research Private Limited has revised the outlook to ‘Positive’ from ‘Stable’, and affirmed long-term issuer rating at IND AA on credit facilities of Torrent Pharmaceuticals Limited.

The credit rating agency revises the company’s rating on Term loan to IND AA / Positive from IND AA / Stable. It also revised the rating to IND AA / Positive from IND AA / Stable on Non-convertible debentures (NCDs) of the company.

“The agency continues to take a consolidated view of Torrent and its subsidiaries while arriving at the ratings, because of the strong legal, operational and strategic linkages between them. Torrent has 15 subsidiaries overseas,” company shared Ind-Ra’s rating rationale.

It further said, the Positive Outlook reflects over 200bp growth outperformance by Torrent’s India business vs the Indian pharma market (IPM) since FY19, led by a higher value chronic and sub-chronic therapy portfolio.

It also reflects improving growth visibility in the key markets of the US, Germany and Brazil. It portrays improvement in the consolidated operational performance with the EBITDA margins rising 400bp to 31.4% during 9MFY21 from the FY20 levels, led by the successful integration of acquired business and cost-saving initiatives; and a net debt reduction of close to Rs10 billion in FY21.

At around 12.08 pm, Torrent Pharmaceuticals Ltd was trading at Rs2624.20 per piece up Rs14.80 or 0.57% from its previous closing of Rs2,609.40 per piece on the BSE.

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