Shares of Torrent Pharmaceuticals rose as much as 10 per cent to hit an intraday high of Rs 2,675.35 after its consolidated net profit in June quarter rose 49 per cent annually to Rs 321 crore. The company had reported net profit of Rs 216 crore in the same quarter last year. Torrent Pharma’s revenue from sales of products rose 2 per cent to Rs 2,014 crore from Rs 1,976 crore. The company’s gross margins were at 74 per cent and EBITDA margins were at 32 per cent, Torrent Pharma said in a stock exchange filing.
“Q1 continued to witness challenges posed by Covid 19, hampering industry growth in global markets. However, most of our 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. We remain optimistic about a gradual recovery in India, Brazil, US and Germany in the coming quarters,” Samir Mehta, executive chairman, Torrent Pharma said in a statement.
Revenue from US operations declined 1 per cent 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, Torrent Pharma said in a press release.
From Indian operations, Torrent Pharma’s revenue advanced 2 per cent to Rs 925 crore. While the industry growth was negatively impacted due to Covid-19, Torrent’s performance was aided by high chronicity of its portfolio, the Gujarat-based drug maker added.
As of 10:42 am Torrent Pharma shares traded 9.2 per cent higher at Rs 2,661.10, outperforming the Sensex which was trading on a flat note.