- 24 Jul 2024
- ICICI Securities
TORRENT PHARMA Q1FY25- NUMBERS BUOYED BY INDIA AND OTHER MARKETS, MARGINS SOLID
TORNTPHARM - 3332 Change: 86.00 (2.65 %)News: Revenues grew ~10% YoY to ₹ 2859 crore, mainly driven by growth in India, Other emerging markets and Germany which neutralised slow growth and de-growth in Brazil and the US, respectively. EBITDA grew ~14% YoY to ₹ 904 crore driven by GPM improvement (~81 bps to 75.7%). EBITDA margins expanded by ~109 bps to 31.6%. PAT grew ~21% to ₹ 457crore. India Business grew by 15% YoY to ₹ 1635 crore on the back of 8.5% price hike, 4% from new launches and 2.5% volume growth. Brazil Business grew mere 3% YoY to ₹ 196 crore impacted by floods in some parts of the country. Germany Business improved by 10% YoY to ₹ 284 crore complemented by new tenders and 8 new launches. U.S Business de-grew by ~12 % YoY to ₹ 259 crore as there were no new launches.
Views: Branded business performances continue to have strong correlation with the company’s margins (GPM and EBITDAM). India continues to perform well with focus on power brands besides consumer business foray. Brazil numbers (excluding the flood impact) are driven by planned focus on branded generics and field force expansion. In Germany, the volatility has reduced due to normalcy in tender allocation. US continues to weigh negative due to lack of new launches, but the situation is set to improve in FY25 as Dahej received EIR from the USFDA last year and Indrad resolution is expected soon. The management expects margin improvement momentum (50-100 bps every year) to persist as besides branded generic markets in India and Brazil, the future looks far better for generic markets of Germany and now US as well.
Impact: Positive