Higher sales, lower forex losses drive Torrent’s Q2 profits by 54% to Rs 74 crore

Torrent Pharmaceuticals Limited posted global sales at Rs. 465 crores for second quarter (Q2) ending 30th September, 2009, up by 16% from Rs 400 crores of the comparable quarter, driven by both domestic and overseas markets.

Torrent Pharma’s domestic formulation business recorded sales of Rs 181 crores in the quarter, growing 15%.

Torrent Pharma’s oversease sales India were up 14% at Rs. 234 crores.

Torrent Pharma’s operations in Brazil registered quarterly sales growth of 2%, with revenues growing from Rs. 85 crores to Rs 87 crores.

Germany-based Heumann operations clocked sales of Rs. 61 crores growing 9%. US operations registered sales of Rs. 21 crores against Rs. 5 crores in the comparable quarter. Europe (other than Heumann), Russia & CIS and Rest of the world operations grew 11% with sales of Rs. 65 crores rising from Rs. 59 crores in comparable quarter.

Torrent’s operating profits (PBDIT) for the quarter grew 83% at Rs. 118 crores compared to Rs. 65 crores in the corresponding quarter last year.

Higher sales volumes both in domestic & international business, higher licensing income and lower foreign exchange losses contributed to growth in profits.

Net profit (PAT) of Rs. 74 crores was up 54% from Rs. 48 crores during the same period last year.

As in Q1, the Company has not recognized MAT credit entitlement asset in the current quarter. The comparable quarter includes Rs. 5 crores towards MAT credit entitlement. On a MAT adjusted basis, the PAT was up 72%.

For H1, Torrent Pharma’s sales increased 19% to Rs. 939 crores compared with Rs. 788 crores for the corresponding H1 last year.

Torrent’s  H1 sales outside India at Rs. 459 crores reflect growth of 20%. PBDIT for H1 at Rs. 215 crores was 62% higher compared to Rs. 133 crores in the previous period. PAT for H1 stood at Rs. 89 crores against Rs. 98 crores during the previous period.

During the Q1 of the current year, in view of changes the Income-tax Act, 1961 and other relevant factors, the Company reviewed realisability of MAT credit entitlement asset created in prior years, & wrote-off the MAT credit entitlement of Rs. 53 crores.No further MAT credit entitlement asset has been recognized in the current year. Adjusted for MAT in both the periods, PAT grew by 63%.

Torrent Pharma filed filed 37 ANDAs and 17 DMFs with US FDA as part of its US operations, of which approvals for 11 ANDAs have been received till date at the end of Q2.

Torrent Pharma spent 6.6% (previous H1 6.9%) of consolidated net sales and operating income on R&D was 6.6% (previous H1 6.9%).

Torrent plans to build a new formulation and bulk drug manufacturing unit in Dahez SEZ, south Gujarat to meet the growing needs of regulated markets. Construction activity for a new formulation manufacturing unit at Sikkim is progressing well, in line with the plans. The expansion of API and formulation capacities at Chatral initiated earlier, are also progressing satisfactorily.

Headquartered in Ahmedabad, Torrent Pharma has an annual turnover of over Rs. 1600 crores.

Currently, Torrent has seven discovery projects in pipeline. It has filed 336 patents for NCE’s in all major markets worldwide, of which 144 patents have been granted so far.

Torrent’s manufacturing plant at Chhatral has a capacity to manufacture approx. 3,000 million Tablets, capsules and vials and 15000 kgs of Bulk Drugs/API. The facility has already been approved by authorities from regulated markets like US, UK, Germany, Australia and South Africa. The manufacturing plant at Baddi has a capacity to manufacture 3,600 million tablets, 150 million capsules, 10 million Oral Liquid bottles and 12 million sachets per annum.