Torrent Pharmaceuticals (500420) Q4 02/03 earnings summary

Executive summary

• FY2002-03 sales and operating income rose to Rs 447.24 crore from Rs 442.31 crore; net profit reached Rs 51.77 crore, up from Rs 49.86 crore.

• Domestic formulations and exports grew, while lower insulin offtake and a subdued Indian pharma market weighed on overall sales; higher operating margins and net interest income supported profit growth.

Financial highlights

• Operating profit before depreciation, interest and tax (PBDIT) was Rs 86.58 crore vs Rs 84.26 crore; profit before tax and exceptional items was Rs 73.16 crore vs Rs 65.40 crore.

• Net profit was Rs 51.77 crore vs Rs 49.86 crore, up 3.8%; excluding prior-period and exceptional items, FY03 profit was Rs 51.77 crore vs Rs 44.50 crore, up 16.3%.

• Total sales and operating income was Rs 447.24 crore vs Rs 442.31 crore; standalone sales excluding operating income were Rs 429.76 crore vs Rs 431.94 crore.

• Consolidated sales and operating income was Rs 450.95 crore vs Rs 444.58 crore; consolidated net profit was Rs 44.29 crore vs Rs 46.04 crore.

Outlook and guidance

• FY2003-04 R&D plans included 7 new APIs, 55 domestic formulations and 30 formulations for export markets in Europe, Russia and Brazil.

• Russia operations targeted doubled sales in the coming year; Brazil plans included new launches, improved field productivity, entry into new segments and geographic expansion.

• Bulk drug plant validation was expected to finish by June 2003, enabling commercial production to European DMF standards; regulatory approvals in Norway, the UK and Germany were planned.

• Domestic growth plans focused on wider doctor coverage, therapeutic expansion, marketing productivity and continued product launches; low industry growth was expected to persist.