Torrent Pharma posts disappointing Q1FY17 results

Flagship company of the Torrent Group, Torrent Pharma on July 27, post market hours has declared its Q1FY17 results. In Q1FY17, company has posted a net revenue of Rs 1545 crores, which has slumped by 21 per cent as compared to Q1FY16. EBITDA too has remained at Rs 437 crores, down by 52 per cent as compared to Q1FY16.Net profits, stand at Rs 292 crores which have plunged by 55 per cent as compared to the corresponding quarter of the previous fiscal.

The company's formulation business in India has recorded revenues of Rs 504 crore in Q1FY17 as against Rs 491 crore for the same period in the last fiscal. The US business has posted revenues of Rs 434 crore for the quarter. It was Rs 888 crore for the corresponding period of the previous fiscal. The major reason for the company posting a comparably weak result is because of the timid business the company did in the US market.

On the other hand, the shares of the company on July 27 closed at Rs 1409.2, down by 3.60 per cent. In the last 5 days the shares have slumped by 5 per cent. However, in the last 1 month the shares are up by 4 per cent. Shares' 52-week High/Low stands at Rs 1720/1190.

The company has presence in cardiovascular (CV) and central nervous system (CNS), gastro-intestinal, diabetology, anti-infective and pain management segments. It operates only in one business segment i.e. pharmaceuticals, comprising mainly of the manufacture of branded formulations.