Torrent Pharma dispenses bitter pill

Torrent Pharma posted a dismal set of numbers for Q2FY17. Total consolidated revenue for the quarter dropped 16% (YoY) at Rs.1429 crore and this was mainly on account of a whopping 55 drop in sales to USA. Net profit came in 59% down at Rs.207 crore.

EBITDA for the quarter was also on the decline – down 54% at Rs.330 crore while margin fall was more precipitous from 42.4% to 23.1%. There was a 13% rise in total costs. Tax outgo is down 73%, which to a large extent helped cull a further fall in bottomline.

The company has said that in previous Q2, there was exceptional jump in US revenue and profits which was primarily on account of the launch of a new product in US market, which had limited competition.

Not surprisingly, the stock is currently the top loser on the BSE, down over 9% at Rs.1417.70 – the intra day low point.