Torrent Pharmaceuticals

26 Jan 2022 , 05:27 PM

For the quarter ending Dec 2021, consolidated net sales (including other operating income) of Torrent Pharmaceuticals has increased 5.66% to Rs 2108 crore compared to quarter ended Dec 2020. 

Operating profit margin has declined from 30.43% to 25.52%, leading to 11.37% decline in operating profit to Rs 538.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 18.03% to 17.94%.   Purchase of finished goods cost fell from 11.17% to 9.61%.   Employee cost increased from 17.93% to 19.12%.   Other expenses rose from 22.88% to 26.81%.   

Other income rose 500% to Rs 48 crore.  PBIDT fell 4.72% to Rs 586 crore.  Provision for interest fell 31.87% to Rs 62 crore.  

PBDT stood at Rs 524 crore compared to profit of Rs 524 crore.  

Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 108 crore, compared to Rs 60 crore.  Effective tax rate was 30.25% compared to 16.81%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 16.16% to Rs 249.00 crore.  

Promoters stake was 71.25% as of 31 December 2021 ,compared to 71.25% as of 31 December 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Torrent Pharmaceuticals has increased 5.13% to Rs 6379 crore.  

Operating profit margin has declined from 31.36% to 29.39%, leading to 1.47% decline in operating profit to Rs 1,875.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 17.12% to 18.12%.   Purchase of finished goods cost fell from 12.47% to 9.48%.   Employee cost increased from 17.52% to 18.46%.   Other expenses rose from 22.56% to 24.16%.   

Other income rose 672.22% to Rs 139 crore.  PBIDT rose 4.84% to Rs 2014 crore.  Provision for interest fell 29.47% to Rs 201 crore.  

PBDT rose 10.82% to Rs 1813 crore.  Provision for depreciation rose 1.42% to Rs 500 crore.  

Profit before tax grew 14.87% to Rs 1,313.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 418 crore, compared to Rs 215 crore.  Effective tax rate was 31.84% compared to 18.81%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 3.56% to Rs 895.00 crore.  

Promoters stake was 71.25% as of 31 December 2021 ,compared to 71.25% as of 31 December 2020 .  

Full year results analysis.

Net sales (including other operating income) of Torrent Pharmaceuticals has increased 0.83% to Rs 8005 crore.  

Operating profit margin has jumped from 27.33% to 31.04%, leading to 14.52% rise in operating profit to Rs 2,485.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 17.06% to 17.15%.   Purchase of finished goods cost rose from 11.43% to 12.13%.   Employee cost decreased from 17.70% to 17.38%.   Other expenses fell from 26.92% to 23.33%.   

Other income fell 53.28% to Rs 57 crore.  PBIDT rose 10.91% to Rs 2542 crore.  Provision for interest fell 20.62% to Rs 358 crore.  Loan funds rose to Rs 4,873.00 crore as of 31 March 2021 from Rs 4,366.00 crore as of 31 March 2020.  Inventories rose to Rs 2,681.00 crore as of 31 March 2021 from Rs 2,148.00 crore as of 31 March 2020.  Sundry debtors were lower at Rs 1,523.00 crore as of 31 March 2021 compared to Rs 1,649.00 crore as of 31 March 2020.  Cash and bank balance declined from Rs 666.00 crore as of 31 March 2020 to Rs 604.00 crore as of 31 March 2021.  Investments rose to Rs 181.00 crore as of 31 March 2021 from Rs 2.00 crore as of 31 March 2020 .  

PBDT rose 18.63% to Rs 2184 crore.  Provision for depreciation rose 0.61% to Rs 658 crore.  Fixed assets declined from Rs 7,903.00 crore as of 31 March 2020 to Rs 7,613.00 crore as of 31 March 2021.  Intangible assets declined from Rs 342.00 crore to Rs 341.00 crore.  

Profit before tax grew 28.56% to Rs 1,526.00 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 274 crore, compared to Rs 162 crore.  Effective tax rate was 17.96% compared to 13.65%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 22.15% to Rs 1,252.00 crore.  

Equity capital stood at Rs 85.00 crore as of 31 March 2021 to Rs 85.00 crore as of 31 March 2020.  Per share face Value remained same at Rs 5.00.  

Promoters stake was 71.25% as of 31 March 2021 ,compared to 71.25% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 2,011.00 crore for year ended March 2021 from Rs 1,392.00 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 335.00 crore, compared to Rs 407.00 crore during the year ended March 2020. 

Other Highlights

In Q3 FY22, India revenue grew by 15% compared to Q3 FY21. Brazil revenue went up 5%, US down 20%, Germany down 10%, Other countries up 19% and CRAMS up 7% on YoY basis.

In Q3 FY22, R&D spend was Rs 123 crore compared to Rs 112 crore in Q3 FY21.

Management Commentary: Samir Mehta, Chairman, said: Due to the prolonged delays in reinspection of our US facilities on account of the pandemic, coupled with higher than anticipated pricing pressure, our US business has been adversely affected during this quarter. We remain hopeful of our prospects in the US market as soon as the facilities are reinspected. We have initiated cost optimisation measures which should help us get back on track with respect to margins in the upcoming quarters. Our India business continues to be on a strong footing delivering significantly higher than market growth during the quarter.

Torrent Pharmaceuticals : Consolidated Results

 

	Quarter ended	Year to Date	Year ended
Particulars	202112	202012	Var.(%)	202112	202012	Var.(%)	202103	202003	Var.(%)
Net Sales (including other operating income)	2,108.00	1,995.00	5.66	6,379.00	6,068.00	5.13	8,005.00	7,939.00	0.83
OPM (%)	25.52	30.43	-490 bps	29.39	31.36	-197 bps	31.04	27.33	371 bps
OP	538	607	-11.37	1,875.00	1,903.00	-1.47	2,485.00	2,170.00	14.52
Other Inc.	48	8	500	139	18	672.22	57	122	-53.28
PBIDT	586	615	-4.72	2,014.00	1,921.00	4.84	2,542.00	2,292.00	10.91
Interest	62	91	-31.87	201	285	-29.47	358	451	-20.62
PBDT	524	524	0	1,813.00	1,636.00	10.82	2,184.00	1,841.00	18.63
Depreciation	167	167	0	500	493	1.42	658	654	0.61
PBT	357	357	0	1313	1143	14.87	1526	1187	28.56
Share of Profit/(Loss) from Associates	0	0	–	0	0	–	0	0	–
PBT before EO	357	357	0	1313	1143	14.87	1526	1187	28.56
EO Income	0	0	–	0	0	–	0	0	–
PBT after EO	357	357	0	1313	1143	14.87	1526	1187	28.56
Taxation	108	60	80	418	215	94.42	274	162	69.14
PAT	249	297	-16.16	895	928	-3.56	1252	1025	22.15
Minority Interest (MI)	0	0	–	0	0	–	0	0	–
Net profit	249	297	-16.16	895	928	-3.56	1252	1025	22.15
P/(L) from discontinued operations net of tax	0	0	–	0	0	–	0	0	–
Net profit after discontinued operations	249	297	-16.16	895	928	-3.56	1252	1025	22.15
EPS (Rs)*	14.71	17.55	-16.16	52.89	54.84	-3.56	73.99	60.57	22.15
* EPS is on current equity of Rs 84.61 crore, Face value of Rs 5, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

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