Torrent Pharma

Torrent Pharma is doing very well today morning, hitting a new 52-week high at Rs.538.40, with an almost 2 times surge in volumes. It has come off the highs but remains almost 9% up at Rs.517 levels.

The stock is up after the company yesterday declared its Q3FY14 numbers after market closure. It posted a 41% (YoY) rise in its consolidated net profit at Rs.158 core and this was on the back robust net sales at Rs.990 crore v/s Rs.768 crore in Q3FY13. Its branded formulations have shown a 15% (YoY) growth and Contract manufacture has risen 19%. Total sales in India rose 16% and exports went up 38%. In terms of break-up of the exports, US business reported growth of 61%, Europe (incl.Heumann) 59%, Brazil growth 26% and Rest of the World, including Russia, CIS, Mexico & Canada 9%. 

As per AIOCD, Torrent grew at 12% during the quarter compared to covered market growth of 5% and Indian Pharmaceutical growth of 5%. For YTD December 2013, the revenues increased by 26% to Rs. 2,959 crores compared with Rs. 2,341 crores for the corresponding period last year. Profit before Taxes grew by 25% to Rs. 527 crores compared to Rs. 423 crores during the same period last year.  During the quarter company acquired Indian Branded Formulations Business of Elder Pharma’s branded formulation business in India and Nepal for about Rs.2004 crore. The deal covers more than 30 brands of Elder, including its most famous brand Shelcal. The transaction is subject to conditions precedent including shareholder approval and applicable regulatory approvals and is expected to close in the first half of 2014. The company also declared an interim dividend of Rs.5 per equity share.