Torrent Pharmaceuticals (500420) Q4 97/98 earnings summary

Executive summary

• FY98 sales rose 14% to Rs.361.79 crore; PBIDT increased 25% and PAT 20% YoY, following 6% sales growth in FY97.

• Formulations, research investment, new product launches and export business supported growth; management expected further gains from market expansion and upgraded manufacturing facilities.

Financial highlights

• Sales were Rs.361.79 crore vs Rs.317.94 crore; PBT Rs.42.27 crore vs Rs.34.03 crore; PAT Rs.39.72 crore vs Rs.33.21 crore.

• Proposed equity dividend was Rs.5 per share; prior year dividend was Rs.3.50 plus a special Rs.2.50 per share.

• Other income rose to Rs.10.34 crore from Rs.8.76 crore; manufacturing and other expenses increased to Rs.85.04 crore from Rs.65.88 crore.

• Export business reached a record Rs.105 crore; export earnings in foreign exchange were Rs.107.49 crore vs Rs.7.28 crore in FY97.

Outlook and guidance

• Growth priorities were expanding the market base, gaining share and improving customer services; new products and dosage forms were expected to support future growth.

• Plans called for increasing field force from 800 to over 1,000, with doctor coverage expected to rise 25%.

• Zao Torrent Pharma planned wider Russian distribution, national coverage and participation in local healthcare tenders; management anticipated growth and improved profitability.