Torrent Pharmaceuticals posted a consolidated net loss of Rs 118 crore in Q4 FY22 as compared to a net profit of Rs 324 crore in Q4 FY21.
Net sales rose 9.9% to Rs 2,104 crore in quarter ended 31 March 2022 from Rs 1,915 crore reported in the same period last year.The drug maker reported an exceptional of Rs 485 crores in Q4 FY22, with respect to impairment provision cost related to discontinuation of liquid business in the US. Profit before exceptional items and tax rose nearly 4% to Rs 398 crore in Q4 FY22 from Rs 383 crore in Q4 FY21.
On a consolidated basis, gross profit rose 5% to Rs 1,509 crore in Q4 FY22 as compared to Rs 1,441 crore in Q4 FY21. EBITDA before exceptional item declined 1% to Rs 612 crore in Q4 FY22 from Rs 620 crore reported in the corresponding quarter previous year. Meanwhile, EBITDA margin declined to 29% in Q4 FY22 from 32% posted in Q4 FY21.
R&D spend spiked 8% to Rs 138 crore in Q4 FY22 from Rs 148 crore in Q4 FY21.
India revenue at Rs 1,034 crores grew by 12%. Growth was aided by new launch momentum, robust performance of top brands and continued market outperformance across focus therapies.
Brazil revenue at Rs 251 crores, were up by 33%. Constant currency revenue stood at R$ 172 million in Q4 FY22. Strong growth and market outperformance was complemented by performance of top brands and new launches.
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US revenue grew by 5% year on year to Rs 282 crores in Q4 FY22. Constant currency revenue stood at $37 million. Revenue grew sequentially by 20% aided by the launch of Dapsone during the quarter. As on March 31, 2022, 57 ANDAs were pending approval with USFDA and 5 tentative approvals were received. During the quarter, 6 ANDAs were filed & 1 ANDA was approved.
Germany revenue stood at Rs 218 crores, down by 18% year on year. Torrent Pharma said growth was adversely impacted by loss of products in a recent tender.
Commenting on the Q4 results, Samir Mehta,the chairman of Torrent Pharmaceuticals said, We are pleased with the robust operational performance delivered during the quarter. The branded businesses contributed to 70% of total revenues in Q4 and grew by 15% with India and Brazil continuing on a strong footing. The US business registered sequential growth aided mainly by launch of a new product. While our EU business faced some headwinds, we remain optimistic that the cost efficiency measures being taken will bring us back to growth in this market in the coming quarters.
He further added, We have taken a difficult decision of discontinuing our liquids business in the US. We believe the incremental investments required will exceed the potential economic benefits in this segment due to changing market conditions, as economics and competitive intensity have turned unfavorable compared to the time of conceptualization.
On full year basis, the company recorded 37.9% fall in net profit to Rs 777 crore on a 6.8% rise in net sales to Rs 8,419 crore in FY22 over FY21.
The company's board approved to seek shareholder nod to raise Rs 5,000 crore through various means including Qualified Institutional Placement (QIP).
The company's board has also recommended issue of bonus shares in the ratio of 1:1 i.e. one equity share for each fully paid up equity share held as on record date fixed for the purpose. The company will inform in due course the record date for determining shareholders that will receive bonus shares.
Meanwhile, the board of directors of the company recommended a final dividend of Rs 23 per equity share including the special dividend of Rs 15 per equity share, for the financial year ended 31 March 2022. The record date for the said dividend is 6 June 2022.
Torrent Pharma, with annual revenues of more than Rs 8,000 crore, is the flagship company of the Torrent Group. It is ranked 8th in the Indian pharmaceuticals market and is amongst the Top 5 in the therapeutics segments of Cardiovascular (CV), Gastro Intestinal (GI),Central Nervous System (CNS), and Vitamins Minerals Nutritionals (VMN)
Shares of Torrent Pharmaceuticals were trading 8.49% higher at Rs 2858.25 on the BSE.
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