Torrent Pharma rallies 8.7 per cent despite posting a decline in profits

The company witnessed a modest growth of over 5.17 per cent in revenues for FY22.

Torrent Pharmaceuticals Ltd, a large cap pharmaceuticals company, has been trending on Dalal Street for not one but many reasons. The stock has soared over 8.72 per cent from its previous close of Rs 2,634.55. The scrip opened at Rs 2,750 and made a day’s high of Rs 2,878.15. At 11:50 am, the stock is trading at Rs 2,864.  

The pharma company has completed its 50 years of incorporation and is celebrating the same by declaring a dividend of Rs 23 per share on face value of Rs 5 per equity share along with a special dividend of Rs 15 per share. It is also considering a bonus share issue in the ratio of 1:1 which will increase its total equity paid up capital from Rs 84.62 crore to Rs 169.22 crore. The record date for the same will be announced in due course.  

The company announced its Q4 and FY22 results on 25th May. In Q4FY22, revenue grew by 9.87 per cent YoY to Rs 2104 crore from Rs 1915 crore in Q4FY21. PBIDT (Ex OI) was reported at Rs 561 crore, down by 3.61 per cent YoY and its margin was reported at 26.33 per cent, contracting by 372 basis points YoY. PAT was reported at Rs -118 crore, down by 136.42 per cent from Rs 324 crore in the same quarter of the previous fiscal year. This was mainly due to exceptional items of Rs 485 crore related to discontinuation f liquid business in the US.   

As far as the fiscal 2022 results are concerned, the revenues grew by 5.17 per cent to Rs 8,419 crore as against FY21. The EBITDA increased by 3.4 per cent but PAT decreased by 38 per cent to Rs 2,628 crore and Rs 777 crore, respectively.      

Torrent Pharmaceuticals Ltd., the flagship company of Torrent Group is one of the leading pharma companies in the country. It was a pioneer in initiating the concept of niche marketing in India and today is ranked amongst the leaders in the therapeutic segment of cardiovascular (CV), central nervous system (CNS), gastro-intestinal (GI) and women healthcare (WHC). The stock has a 52-week high of Rs 279.15 and a 52-week low of Rs 200.85.