Did Torrent Pharma's Q4 net profit decline to Rs 498 crore despite revenue growth?
Click to start listening
Synopsis
Torrent Pharmaceuticals faces a slight profit dip in Q4 FY25, reporting Rs 498 crore, while revenue climbs to Rs 2,959 crore. With rising expenses and strategic leadership changes, the company aims for growth despite challenges in the Brazilian market.
Key Takeaways
- Net profit declined by 0.99% in Q4 FY25.
- Revenue from operations rose to Rs 2,959 crore.
- Expenses increased by nearly 4.70% sequentially.
- Strong performance in Indian and US markets.
- Aman Mehta appointed as Managing Director.
Mumbai, May 21 (NationPress) Torrent Pharmaceuticals announced a slight decrease of 0.99 per cent in its net profit for the fourth quarter (Q4) of FY25, with earnings falling to Rs 498 crore from Rs 503 crore in the previous quarter (Q3 FY25).
The homegrown pharma company experienced a rise in total expenses, which increased to Rs 2,252 crore, marking an increase of nearly 4.70 per cent sequentially and 4.99 per cent year-on-year (YoY).
This rise was primarily attributed to higher costs across major segments. The cost of materials consumed rose by 8.65 per cent to Rs 402 crore, while the employee benefits expense increased by 2.19 per cent to Rs 561 crore.
Depreciation and amortization expenses edged up 1.01 per cent to Rs 201 crore, and other expenses grew by 4.46 per cent to Rs 703 crore.
Despite the net profit decline, the company's revenue demonstrated consistent growth. Revenue from operations reached Rs 2,959 crore in Q4 FY25, up approximately 5.34 per cent from Rs 2,809 crore in Q3.
Total income also saw an increase of around 4.70 per cent, climbing to Rs 2,941 crore from Rs 2,842 crore in Q3, as per its stock exchange filing.
In terms of market performance, revenue from the Indian business rose 12 per cent to Rs 1,545 crore, primarily driven by strong results in focus therapies.
The US segment also performed well, growing 15 per cent to Rs 302 crore. Revenue from Germany showed modest growth of 2 per cent to Rs 286 crore.
Conversely, revenue from Brazil saw a decline of 6 per cent to Rs 351 crore, affected by the depreciation of the Brazilian Real.
In a move towards succession planning, Torrent Pharma appointed Aman Mehta, the elder son of Torrent Group Chairman Samir Mehta, as Managing Director, effective August 1. The company emphasized his leadership role in market share expansion, revitalizing cardiac and diabetes portfolios, and launching the consumer health division.
Furthermore, the board has proposed to seek shareholder approval to raise up to Rs 5,000 crore through equity shares or convertible instruments such as QIP in the upcoming Annual General Meeting (AGM).
Point of View
Our perspective remains aligned with the pulse of the nation. Torrent Pharmaceuticals is navigating a challenging landscape with a slight profit decline, yet their resilient revenue growth indicates potential for recovery. The leadership transition and strategic financial maneuvers are noteworthy elements that could shape the future trajectory of this prominent player in the pharmaceutical industry.
NationPress
01/06/2025
Frequently Asked Questions
What caused the decline in Torrent Pharma's net profit?
The decline in net profit was primarily due to rising costs across various segments, including materials consumed and employee benefits.
How did Torrent Pharma's revenue perform in Q4 FY25?
Despite the profit decline, Torrent Pharma's revenue increased to Rs 2,959 crore, reflecting a growth of approximately 5.34% compared to Q3 FY25.
What are the key markets for Torrent Pharmaceuticals?
Torrent Pharmaceuticals saw notable growth in the Indian and US markets, with revenue increases of 12% and 15% respectively, while Brazil faced a revenue decline.
Who has been appointed as the new Managing Director?
Aman Mehta, the elder son of Torrent Group Chairman Samir Mehta, has been appointed as the new Managing Director, effective August 1.
What are the future plans for Torrent Pharmaceuticals?
The company plans to raise up to Rs 5,000 crore through shareholder approval for equity shares or convertible instruments in the upcoming AGM.
