Ahmedabad-based drug-maker Torrent Pharma Ltd., plans to bring down consolidated debt by nearly half by financial year 2025.
In a conversation with CNBC-TV18, the company's director Aman Mehta said that he expects the debt to come down to Rs 2,500 crore by financial year 2025. Torrent Pharma's current debt stands at Rs 4,500 crore, implying a reduction of over 44 percent.
Mehta said that the debt repayment will be done through cash flows, which has been the trend in recent years and expects the company to have comfortable levels of net debt over the next two financial years.
Torrent Pharma has been in the news after it acquired Curatio Healthcare for Rs 2,000 crore in an all-cash deal. Mehta expects Torrent's latest acquisition to earn Rs 300 crore to Rs 500 crore in revenue over the next three years.
The drug-maker's director also added that the company has no further M&A plans and would first look to integrate Curatio into its business.
Also Read: Torrent Pharma to become 2nd largest player in Cosmetic Dermatology with Curatio acquisition
Although Mehta believes that there is cross-selling synergy potential with Curatio, analysts have questioned the valuation that the company has paid for the deal. However, Mehta believes that company-level margins will not be impacted due to the acquisition.
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