Torrent Pharma Q2 profit rises 24% to ₹386 crore driven by robust growth in India and globally

At the operating level, EBITDA rose 36.2% to ₹825 crore, up from ₹679 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹809 crore.

EBITDA margin stood at 31% in the reporting quarter as compared to 29.6% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 30.4% for the quarter under review.

In India, the company's revenue stood at ₹1,444 crore, representing a substantial 18% growth, attributed to the success of its Curatio portfolio, which expanded by 17% primarily driven by a strong performance in top-focus brands. For the first half of the fiscal, Torrent reported a revenue of ₹2,870 crore, marking a solid 16% increase.

In Brazil, the company's revenue reached ₹252 crore, reflecting a 36% surge. However, it's worth noting that the second-quarter revenues in Brazil were influenced by the sales spillover from the first quarter. For the first half of the fiscal, revenue in Brazil reached ₹442 crore.

Germany also showed positive results, with revenue at ₹266 crore, an increase of 21%. When considering constant currency revenue at 30 million euros, it recorded an 8% growth. For the first half of the fiscal, revenue in Germany reached ₹525 crore, up by 21% when considering constant currency revenue at 58 million euros, marking a 9% increase.

On the other hand, the company reported a decline in the US market with a revenue of ₹248 crore, down 15%. When considering constant currency revenue at $30 million, it was down by 18%. This decline was attributed to the loss of low-margin business and a lack of new product launches.

However, there is a positive development as the Dahej facility received an Establishment Inspection Report (EIR), paving the way for new product approvals. As of September 30, 2023, the company had 41 Abbreviated New Drug Applications (ANDAs) pending approval with the US Food and Drug Administration (USFDA), with three tentative approvals received. During the quarter, one ANDA was approved.

For the first half of fiscal, revenue in the US amounted to ₹541 crore, representing an 8% decline. When adjusted for one-off income, the constant currency de-growth was 7%.

The results came after the close of the market hours. Shares of Torrent Pharmaceuticals Ltd ended at ₹1,876.95, down by ₹12.00, or 0.64%, on the BSE.