TORRENT PHARMA Announces Quarterly Results (1QFY21); Net Profit Up 48.6%

Fri, 31 Jul

TORRENT PHARMA has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

TORRENT PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-19*	3 Mar-20*	3 Jun-20*	QoQ Change	YoY Change
Net Sales	Rs m	20,220	19,460	20,560	5.7%	1.7%
Other income	Rs m	200	150	40	-73.3%	-80.0%
Turnover	Rs m	20,420	19,610	20,600	5.0%	0.9%
Expenses	Rs m	14,810	13,980	13,950	-0.2%	-5.8%
Gross profit	Rs m	5,410	5,480	6,610	20.6%	22.2%
Depreciation	Rs m	1,600	1,680	1,610	-4.2%	0.6%
Interest	Rs m	1,220	1,020	1,020	0.0%	-16.4%
Profit before tax	Rs m	2,790	2,930	4,020	37.2%	44.1%
Tax	Rs m	630	-210	810		28.6%
Profit after tax	Rs m	2,160	3,140	3,210	2.2%	48.6%
Gross profit margin	%	26.8	28.2	32.1
Effective tax rate	%	22.6	-7.2	20.1
Net profit margin	%	10.6	16.0	15.6

Year-on-Year Performance:

• The company's operating income during the quarter grew 1.7% on a year-on-year (YoY) basis. The expenses were down by 5.8% YoY during the same period.
• The company's operating profit increased by 22.2% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 32.1% in 1QFY21 as against 26.8% in 1QFY20.
• Depreciation charges increased by 0.6% and finance costs declined by 16.4% YoY, respectively.
• Other income declined by 80.0% YoY during the quarter.
• Net profit for the quarter increased by 48.6% YoY. Net profit margins during the quarter increased from 10.6% in 1QFY20 to 15.6% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 5.7% on a quarter-on-quarter (QoQ) basis. The expenses were down by 0.2% QoQ during the same period.
• The company's operating profit increased by 20.6% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 32.1% in 1QFY21 as against 28.2% in 4QFY20.
• Net profit for the quarter increased by 2.2% QoQ, while net profit margins declined from 16.0% in 4QFY20 to 15.6% in 1QFY21.

To see how TORRENT PHARMA has performed over the last eight quarters,please visit here.

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TORRENT PHARMA Share Price Performance

Over the last one year,TORRENT PHARMA share price has moved up from Rs 1,669.3 to Rs 2,719.9, registering a Gain of Rs 1,050.6 or around 62.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 18,028.1 (up 2.0%). Over the last one year it has moved up from 12,704.4 to 18,028.1, a gain of 5,324 points (up 41.9%).

Overall, the S&P BSE SENSEX is up 0.6% over the year.

Current Valuations

At the current price of Rs 2,719.9, the price to earnings (P/E) ratio of TORRENT PHARMA stands at 40.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 9.7 times.