In This Article:
Release Date: January 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Torrent Pharmaceuticals Ltd (BOM:500420) reported a strong performance in its branded market, accounting for 76% of overall revenues.
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The India business showed a growth of 12% for the quarter, outperforming the market growth of 8%.
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The chronic business, particularly in cardiac, diabetes, and gastro divisions, demonstrated robust growth, with cardiac growing by 16% against a market growth of 10%.
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The company has expanded its coverage to 75,000 outlets, enhancing its market reach.
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An interim dividend of INR26 per equity share was recommended, reflecting confidence in financial stability.
Negative Points
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Insulin revenues were nil for the quarter due to facility release delays, impacting revenue growth by 2%.
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The US business faced a decline in constant currency revenues by 3%, indicating challenges in that market.
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Currency depreciation in Brazil affected financial performance, although the company expects price compensation from the government.
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The CNS market in India showed slower growth compared to other segments, requiring more strategic focus.
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The company anticipates continued impact from currency depreciation in Brazil for a couple more quarters.
Q & A Highlights
Q: Can you provide an update on the CMO business and whether you expect a full recovery in the fourth quarter? A: Yes, there will be a spillover into the fourth quarter, and we expect significant recovery above the normal run rate of 75 to 80 per quarter. (Unidentified_3, Executive Director)
Q: How is the Brazil business performing in light of currency depreciation, and do you expect the fourth quarter to be the largest? A: We expect past trends to continue with a bigger fourth quarter. The currency impact should not affect this fiscal year, and we anticipate a higher price increase allowed by the government starting in April. (Unidentified_5, International Business Executive Director)
Q: Can you provide a breakdown of the growth in the Indian market? A: The growth for the quarter was 12%, broken down into 1.5% volume, 8% price, and 2.5% new products. The market's volume growth is close to zero. (Unidentified_4, India Business Executive)
Q: What is the outlook for the US business given the regulatory clearance? A: The US business will see a slow pickup as new filings have been low. We do not expect meaningful growth in the short run, but new filings are expected to have an impact eventually. (Unidentified_5, International Business Executive Director)