Torrent Pharmaceuticals: Q3FY14 Result Analysis

Ahmedabad based Torrent pharmaceuticals came out with better numbers for the quarter ended December 2013. On a consolidated basis the total income of the company grew by 29% on YoY basis for Q3FY14 to stand at Rs 990 crore as against Rs 768 crore reported during the same quarter last fiscal.

EBITDA came in at Rs 215 crore witnessing growth of 32.72% for Q3FY14 on YoY basis. The EBITDA margins for the said quarter came in at 21.72% witnessing up-move of 62 basis points on YoY basis. The bottomline of the company also grew by 41% on YoY basis to stand at Rs 158 crore for Q3FY14 as against Rs 112 crore reported last fiscal.

Revenue from the domestic formulation business of the company came in at Rs 297 crore witnessing a growth of 15% on YoY basis. The point that needs to be highlighted is that during the recently concluded quarter the company grew by 12% as far as covered market growth of 5% for the Indian pharmaceutical market as per the AIOCD. On the international front, the revenues for the company grew by 41% to Rs 637 crore. In the international operations, the US business reported a growth of 61%, Europe grew by 59% and ROW markets grew by 9% for the quarter.

In the quarter, the company has acquired Indian Branded Formulation of Elder Pharmaceuticals for a consideration of Rs 2004 crore. According to the management, the transaction is subject to shareholders' approval.

Also, the company has declared an interim dividend of Rs 5 per share. The stock closed the day at Rs 475. We feel that this set of result is likely to invite investors' interest in coming sessions.