Torrent Pharmaceuticals (500420) Q4 98/99 earnings summary

Executive summary

• FY99 sales were Rs 318.44 crore vs Rs 361.79 crore in FY98; profit after tax was Rs 36.35 crore vs Rs 39.72 crore.

• Domestic sales rose to Rs 292.27 crore from Rs 256.43 crore, while exports fell to Rs 26.17 crore from Rs 105.36 crore amid economic disruption in key markets.

• Operations were consolidated at Indrad as manufacturing at Vatva and Rajpur was discontinued; Indrad modernization and capacity expansion continued.

Financial highlights

• Total sales Rs 318.44 crore vs Rs 361.79 crore; other income Rs 12.36 crore vs Rs 10.34 crore; sales and other income Rs 330.80 crore vs Rs 372.13 crore.

• Profit before tax Rs 40.64 crore vs Rs 42.27 crore; tax provision Rs 4.29 crore vs Rs 2.55 crore; profit after tax Rs 36.35 crore vs Rs 39.72 crore.

• Domestic formulation sales reached Rs 279.11 crore vs Rs 250.55 crore, up 11%; new product launches generated Rs 3.56 crore in sales and increased sales by 2%.

• Recommended equity dividend Rs 6 per share vs Rs 5 in FY98; annualized dividend rate 60%.

Outlook and guidance

• Delayed Russian Ministry of Health orders of Rs 80 crore and Ministry of Defence orders of Rs 8 crore were received and scheduled for execution in FY00.

• Intensified marketing in existing export markets and initial steps to enter regulated markets were expected to support future growth.

• Priorities include focusing on core competencies, improving technological skills for new drug development, and continuing product launches for domestic and international markets.