Torrent Pharmaceuticals (500420) Q4 99/00 earnings summary

Executive summary

• FY ended 31 Mar 2000: sales rose 32.48% to Rs 421.90 crore; operating profit increased over 75% to Rs 71.17 crore. Export growth drove most of the increase, while domestic sales grew 4.38%.

• PAT reached Rs 45.58 crore versus Rs 36.35 crore; results included a Rs 15.14 crore exceptional write-off related to an advance to Torrent Gujarat Biotech Limited (TGBL).

Financial highlights

• Total sales increased to Rs 421.90 crore from Rs 318.44 crore; exports were Rs 116.81 crore versus Rs 26.17 crore, and domestic sales were Rs 305.09 crore versus Rs 292.27 crore.

• Operating profit was Rs 71.17 crore versus Rs 40.64 crore; profit before tax after the exceptional charge was Rs 56.03 crore versus Rs 40.64 crore.

• PAT was Rs 45.58 crore versus Rs 36.35 crore; tax provision was Rs 10.45 crore versus Rs 4.29 crore.

• Materials expense rose to Rs 194.43 crore from Rs 125.04 crore; net interest expense was Rs 16.24 crore versus Rs 4.68 crore.

Outlook and guidance

• Sales growth expected from completed domestic divisionalization, improved doctor targeting, scientific promotion, stronger field-force capabilities, new products and supply-chain improvements.

• Planned pipeline includes products in cardiology and neuro-psychiatry, newer GI and antibacterial drugs, and entry into diabetes and pain management; further launches expected during the year.

• Manufacturing modernization and expansion, estimated at Rs 55 crore, was expected to finish by year-end, supporting European regulatory standards and higher domestic demand.

• Russia operations planned two new products in 2000; additional regional expansion and promotion were expected to support growth and profitability.