Torrent Pharma

Torrent Pharma hit a new life time high on the back of its exuberant Q1FY16 numbers. On a consolidated total income of Rs.1947 crore, up 75% (YoY), the company posted an almost equal 75% jump up in net profit at Rs.449 crore. EBITDA showed a major jump – up almost 3 times from Rs.345 crore to Rs.909 crore. Margins came in very healthy at 46.7% v/s 31%. Thus all around, it has been a fantastic performance.

The company has attributed this exceptional performance to launch of a new product in the US market, which currently has limited competition. Its generic revenue from US operations for the quarter showed a whopping 231% growth. And in India, domestic formulations business recorded growth of 39%. The continuation of this is dependent on competitive market conditions. Its equity currently stands at Rs.85 crore and EPS of for the quarter is at Rs.26.54 (Face value of Rs.5).

The company recently took over 100% stake in Zyg Pharma Pvt Ltd, part of the Mumbai-based Encore Group, for an undisclosed sum. Zyg Pharma makes dermatological formulations including creams, ointments, gels, lotions, solutions. And its previous big ticket acquisition, Elder Pharma in Dec’13 is bringing in benefits to Torrent in the therapeutic areas. Thus operational efficiencies and these strategic takeovers are taking Torrent indeed to new highs.