Updated February 4th, 2024 at 12:44 IST
Torrent Pharma reports robust Q3 profit driven by strong domestic demand
Torrent Pharmaceuticals, specialising in medications for diabetes, pain management, cancer, and infections, reported a one-time gain of Rs 88 crore.
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Leading drugmaker Torrent Pharmaceuticals has announced a remarkable 30 per cent surge in its pre-tax profit for the third quarter, attributing the substantial growth to robust domestic demand. The consolidated profit before exceptional items and tax reached Rs 543 crore for the quarter ending December 31, up from Rs 419 crore in the previous year.
Torrent Pharmaceuticals, specialising in medications for diabetes, pain management, cancer, and infections, reported a one-time gain of Rs 88 crore during the period due to the sale of a US facility.
The company's revenue from operations witnessed a nearly 10 per cent increase, reaching Rs 2,732 crore. A significant portion of this growth was contributed by the robust domestic business, accounting for 52 per cent of the total revenue. Sales from the domestic sector, particularly focusing on developing chronic and sub‐chronic therapies, surged by 12 per cent to Rs 1,415 crore.
Analysts attribute Torrent's consistent revenue growth to its strategic new product launches and a strong pipeline of over-the-counter (OTC) drugs. The company, renowned for OTC calcium supplement Shelcal 500, had been in discussions to acquire a 33.4 per cent stake from Cipla's founding family, although the matter was downplayed by Cipla CEO Umang Vohra in October.
Torrent Pharma's sales in Brazil, its second-largest revenue generator, climbed 26 per cent to Rs 312 crore, while those in Germany increased by 12 per cent. This positive financial report aligns with the trend observed in larger rivals like Cipla and Dr Reddy's Laboratories, both of which exceeded third-quarter profit expectations, primarily due to strong performances in North American markets.
Torrent's shares were trading 0.4 per cent higher following the release of the results.
Published February 2nd, 2024 at 15:52 IST