Pharma company Torrent Pharmaceuticals Limited's net profit of Rs 15 crores has gone down by 69 per cent from Rs 49 crores, courtesy Minumum Alternative Tax (MAT) credit entitlement, according to its financial results for the quarter (Q1) ended June 30,2009.
During the quarter, in view of changes proposed in the Finance Bill (No 2), 2009 and other relevant factors, the company reviewed realisability of MAT credit entitlement, based on which, the MAT credit entitlement of Rs 53 crores, recognised in earlier years has been written off during the quarter and incremental MAT credit entitlement for the quarter has not been recognised. Excluding MAT credit entitlement adjustment, PAT grew by 55 per cent, said a company official.
The company's sales during the quarter stood at Rs 474 crores, up by 22 per cent from Rs 388 crores of the comparable quarter. The company's overseas sales rose 26 per cent to Rs 225 crores. Operating profits for the quarter grew by 41 per cent at Rs 96 crores compared to Rs 68 crores in the corresponding quarter last year.