Torrent Pharmaceuticals (500420) Q4 03/04 earnings summary

Executive summary

• FY03-04 net sales and operating income reached Rs.460.59 crore, while reported net profit was Rs.64.17 crore; adjusted for prior-period and exceptional items, PAT was Rs.65.77 crore.

• Consolidated sales rose 27% to Rs.462.51 crore and consolidated net profit rose to Rs.54.47 crore; overseas subsidiary losses reduced consolidated profit versus standalone results.

Financial highlights

• Standalone sales and operating income increased from Rs.380.55 crore to Rs.460.59 crore; net profit increased from Rs.51.77 crore to Rs.64.17 crore.

• Adjusted PAT, excluding prior-period and exceptional items, was Rs.65.77 crore versus Rs.51.77 crore; adjusted growth was 27%.

• Consolidated PAT was Rs.54.47 crore versus Rs.44.29 crore; consolidated EPS was Rs.25.74 versus Rs.20.93.

• Other operating income declined 24.6% to Rs.13.19 crore, mainly on lower dossier income and processing charges; other income rose to Rs.3.65 crore, largely from dividends and investment gains.

Outlook and guidance

• Domestic launches planned for FY04-05 include 39 formulations; 30 APIs/formulations were planned for Brazil, Russia, Europe and the US.

• First US ANDA submission and expected US FDA facility approval targeted for FY04-05; European generics revenue expected from FY05-06 as key patents expire.

• New Baddi formulations plant was planned to begin commercial operations in Q2 FY05-06; capacity expansion and process-development work at Indrad was scheduled for completion in FY04-05.

• Brazil subsidiary was expected to turn around in FY04-05; domestic new-product launches and international generics were identified as growth drivers.