Torrent Pharma Q1 profit jumps 48%

Share price of Torrent Pharma rallied more than 10% Friday, a day after the drug maker reported strong earnings performance for the fiscal first quarter to June 30.
The Ahmedabad-based company reported a 48.61% rise in consolidated net profit to Rs 321 crore for the quarter ended June 30, 2020, mainly on account of robust sales in the Indian market. The company had posted a net profit of Rs 216 crore in the same period of the previous fiscal.
Consolidated revenue from operations stood at Rs 2,056 crore for the quarter. It was Rs 2,022 crore for the same period a year ago.

The gross margins were at 74% and EBITDA margins were at 32%.
Although, Q1 continued to pose challenges from COVID-19, hampering industry growth in global markets, yet, most of its focus markets have seen a steady recovery since June.
In India, despite a challenging market environment, Torrent was able to sustain its base revenue of the previous year with the chronic and sub-chronic portfolio gaining market share.

Expenses were lower during the quarter owing to lockdowns which aided margins. It remains optimistic about a gradual recovery in India, Brazil, US and Germany in the coming quarters.
Revenue from US operations declined 1% to Rs 373 crore while constant currency sales came in at $47 million. Sales were impacted by price erosion on base portfolio and absence of new launches.
From Indian operations, Torrent Pharma’s revenue advanced 2% to Rs 925 crore aided by high chronicity of its portfolio.

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