Torrent Pharma post Rs 118 crore net loss in Q4FY22

Torrent Pharma on Wednesday reported a year-on-year (YoY) net loss of Rs 118 crore in Q4FY22 due to a one-time impairment provision and costs related to the discontinuation of liquid business in the US.

The Ahmedabad-based drug maker reported Rs 324 crore net profit in the corresponding period of the previous year. Total revenues rose 10 % YoY to Rs 2,131 crore in Q4FY22, compared to the previous year's Rs 1937 crore.

The company had provisioned Rs 485 crores, relating to impairment charges and discontinuation of liquid business in the US. The discontinuation of liquid business in US business was taken following a financial viability assessment.

The company said the discontinuation will save the operational cost of Rs. 135 crores per annum.

The earnings before interest, tax, depreciation and amortisation (EBITDA) margins dropped 300 basis points YoY to 29% in Q1FY22.

India business which constitutes about half of the company's revenue grew 12% YoY to Rs 1,034 crores in Q4FY22.
As per secondary market data (AIOCD), Torrent’s Q4 FY22 growth was 11% versus the Indian pharmaceutical market (IPM) growth of 4%.

The company attributed the growth to new launch momentum, robust performance of top brands and continued market outperformance across focus therapies.

The US revenues rose 5% to Rs 282 crore in Q4FY22.

“We are pleased with the robust operational performance delivered during the quarter. The branded businesses contributed to 70% of total revenues in Q4 and grew by 15% with India and Brazil continuing on a strong footing," said Samir Mehta, chairman of Torrent Pharma.

"The US business registered sequential growth aided mainly by the launch of a new product. While our EU business faced some headwinds, we remain optimistic that the cost efficiency measures being taken will bring us back to growth in this market in the coming quarters," he added.