Torrent Pharmaceuticals (500420) Q4 00/01 earnings summary

Executive summary

• Domestic branded formulation sales rose 20.3% to Rs. 278 crore, versus estimated industry growth of 8.8%; 24 new products and line extensions supported growth.

• Reported sales fell 6% to Rs. 395.95 crore, reflecting the prior-year Rs. 89.57 crore tender export; excluding that tender, sales grew 19%.

• Net profit was Rs. 41.44 crore, down 9.1% reported; excluding the prior-year tender profit and exceptional charge, comparative net profit grew 11.6%.

Financial highlights

• Sales and operating income was Rs. 405.85 crore versus Rs. 428.37 crore; net sales were Rs. 395.95 crore versus Rs. 421.90 crore.

• Operating profit before depreciation, interest and tax (PBDIT) excluding other income was Rs. 72.39 crore, down 18.4% reported; excluding prior-year tender-related PBDIT, it grew 7.1%.

• Profit before tax was Rs. 59.18 crore versus Rs. 71.17 crore; profit after tax was Rs. 42.81 crore before a Rs. 1.37 crore prior-period adjustment, leaving net profit of Rs. 41.44 crore.

• Other income rose 85% to Rs. 7.08 crore, including Rs. 2.42 crore from a brand sale and Rs. 1.48 crore from software services to a joint venture.

Outlook and guidance

• The 2001-02 pipeline was expected to sustain new-product momentum; faster launches in high-growth and high-margin therapeutic areas were a priority.

• R&D expenditure was planned to rise to 6% of sales from about 5%; discovery research, NCEs and new drug delivery systems were strategic priorities.

• International plans included expanding generic exports, pursuing regulated-market approvals and building overseas subsidiaries or strategic alliances.

• Medium-term domestic plans included brand and company acquisitions, in-licensing and building scale ahead of the 2005 product-patent regime.