Torrent celebrating bonus

Torrent Pharma is among the top gainers on the BSE since the opening bell today. The stock opened over 4% higher at Rs.2750 and rise 9% to Rs.2869.60, not too far from its 10% UC of the day at Rs.2898. Its 52-week high is at Rs.3304.45.

The stock is up mainly on the bonus news. The Board yesterday, while announcing the earnings, also announced a generous bonus of 1:1 – which is one equity share for every one share held as on record date.

This apart, the company also declared a final dividend of Rs 23/share of Rs 5 each. This includes the special dividend of Rs 15/share. The bonus and the special dividend are to commemorate the completion of 50 years of its incorporation this year.

On the earnings front, it posted a consolidated net loss of Rs.118 crore it posted for Q4FY22; it had posted a net profit of Rs.324 crore on Q4FY21. Revenue was up 10% at Rs.2131 crore.

This loss was on account of Rs.485 crore hit it took on account of the one-time impairment provision and costs related to the discontinuation of liquid business in the US. Thus in terms of pure operational performance it was good but for this one-time charge, which is why the markets have given this response to the bonus.

The company in fact said that the discontinuation will save the operational cost of Rs. 135 crore/annum.