- 27 May 2024
- ICICIdirect Research
TORRENT PHARMA Q4FY24- NUMBERS BUOYED BY INDIA AND BRAZIL, MARGINS SOLID
TORNTPHARM - 3322 Change: -0.70 (-0.02 %)News: Revenues grew 10% YoY to Rs 2745 crore, mainly driven by growth in India, Brazil and other emerging markets. EBITDA increased ~22% YoY to Rs 883 crore driven by strong GPM improvement (~353 bps to 75.3%). EBITDA margins expanded by ~298 bps to ~32.2%. PAT grew 56% to Rs 449 crore. India Business grew by 10% YoY to Rs 1380 crore on the back of performance from top brands (Rx as well as OTC) and new launches. Brazil Business grew 17% YoY to Rs 372 crore driven by pricing and volume growth besides traction from new launches. U.S Business de-grew by ~6 % YoY Rs 262 crore as there were no new launches.
Views: Branded business performances of India and Brazil (together account for ~73% of the sales) 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 were 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. 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