- 31 May 2023
- ICICI Securities
Torrent Pharma reports in line numbers driven by branded generic markets
TORNTPHARM - 2714 Change: 19.80 (0.73 %)News: Revenues grew 16.9% YoY to Rs 2491 crore, mainly driven by growth in India, Germany and Brazil markets. EBITDA increased 29.6% YoY to Rs 727 Crore. EBITDA Margins expanded by 286 bps to 29.2% , due to change in revenue mix, higher revenues across geographies. PAT stood at Rs 287 Crore. India Business grew by 21.6% YoY to Rs 1257 on the back of revenue integration from Curatio deal and performance from top brands. Brazil Business grew by 26.7 % YoY to Rs 318, growth was aided by performance of top brands and market share gain and strong momentum in generic segment. U.S Business de-grew by ~0.7 % YoY Rs 280 crore. Germany Business improved by 16.1% YoY to Rs 253 Crore sequential recovery in Germany was complemented by new tenders and growth of OTC segment.
Views: Torrent numbers were in-line with our estimates. Branded generics business India continues to perform well with focus on curatio acquisition and focus on power brands besides consumer business foray. Brazil numbers were beat on our estimates driven by generic brands and CMS franchise. US continues to witness price erosion in high single digit, growth is due to low base and currency tailwinds. In Germany supplies for the tender has started, but it continues to witness price erosion in high single digit. We remain positive on the company’s branded generics business focus which is +70% of sales now. The managment is looking for 60-100 bps margins improvement banking on branded generics business traction.
Impact: Positive