Mumbai: Drug maker Torrent Pharma on Tuesday posted a 16 per cent year-on-year (YoY) drop in net profit to Rs 249 crore in Q3FY22 due to pricing pressure and lack of new approvals in US business.
The company reported net profit of Rs 297 crore in the corresponding period of previous year.
Revenues rose 6 per cent YoY to Rs 2,108 crore in Q3FY22 compared to Rs 1,995 crore in Q3FY21.
The earnings before interest, tax, depreciation and amortisation (EBITDA) declined 5 per cent YoY to Rs 585 crore. The EBITDA margins in Q3FY22 stood at 28 per cent.
The domestic formulation business that constitutes about half of company’s revenues rose by 15 per cent YoY to Rs 1,072 crore, which is higher than Indian pharmaceutical market (IPM) growth of 6 per cent during the same period.
The US business that constitutes about a quarter of Torrent revenues declined 20 per cent YoY to Rs 235 crore.
“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,” said Samir Mehta, chairman of Torrent Pharma.
“We remain hopeful of our prospects in the US market as soon as the facilities are reinspected,” Mehta added.
Mehta said the company has initiated cost optimisation measures which should help it to get back on track with respect to margins in the upcoming quarters.
Our India business – he said the company continues to be on a strong footing delivering significantly higher than market growth during the quarter.
The marketing representative (MR) productivity in India for the quarter was Rs 9.9 lakh. Torrent has a sales force of 3,600.
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