Torrent Pharma tumbles 16% on disappointing December quarter results

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins fell 490 basis points to 25.5 percent in Q3FY22, owing to price erosion in the United States.

Cipla shares up 2%; should you buy, sell or hold post Q3 earnings?

The company's US business has been negatively impacted during this quarter, according to management, due to longer delays in reinspection of US facilities as a result of the pandemic, along with higher-than-expected price pressure.

"In the next quarters, we've started cost-cutting steps that should help us get back on track in terms of profits." "Our India business is on a good footing, producing much better growth than the market throughout the quarter," the company's management said.

Meanwhile, sales in India increased 15% to Rs 1,072 crore, driven by the robust performance of top brands in all focus therapies.  Market growth, as well as the performance of leading brands and new launches, helped the revenue grow 5 percent to Rs 183 crore in Brazil.

The firm has initiated cost optimisation measures which should help it get back on track with respect to margins in the upcoming quarters, Chairman Samir Mehta said. "Our India business continues to be on a strong footing delivering significantly higher than market growth during the quarter," he noted.

Catch all our live market updates here.