Torrent Pharma is the top loser on the BSE, opening 7% at Rs.2940, going down 16.5% to an intraday low at Rs.2642, twice hitting the LC today. Volumes are up over 12-times.

The stock slumped after its disappointing Q3FY22 earnings. Its consolidated net profit fell 16% (YoY) to Rs.249 crore though revenue from operations rose 6% at Rs.2108 crore. EBITDA fell 5% to Rs.585 crore.

The company blamed it fair and square on poor on the poor offtake in US markets. The revenue from USA dropped 20% due to price erosion in the base business and lack of new approvals pending re-inspection of facilities. As on 31 December 2021, 51 ANDAs were pending approval with USFDA and 7 tentative approvals were received. 2 ANDA was approved during the quarter.

The company’s Chairman said, “Due to the prolonged delays in reinspection of our US facilities on account of the pandemic, coupled with higher than anticipated pricing pressure, our US business has been adversely affected during this quarter. We remain hopeful of our prospects in the US market as soon as the facilities are reinspected. We have initiated cost optimisation measures which should help us get back on track with respect to margins in the upcoming quarters. Our India business continues to be on a strong footing delivering significantly higher than market growth during the quarter."

Revenue from India was up 15% and Brazil by 5% though Germany showed a 10% decline.