On Friday, Torrent Pharma announced that its board has approved a plan to raise up to Rs 5,000 crore by issuing equity shares. The company plans to seek approval from its members at the upcoming Annual General Meeting (AGM) to issue these shares, which could include options like convertible bonds or debentures through Qualified Institutional Placement (QIP) or other methods.
Torrent Pharma has been looking for acquisition opportunities. Recently, they showed interest in buying Mumbai-based drug maker JB Pharma. They were also in talks to buy the promoters’ stake in Cipla, but that deal didn’t go through.
The board also recommended a final dividend of ₹6 per equity share. Previously, the company had paid an interim dividend of ₹22 per share.
On Friday, Torrent Pharma reported a 57% increase in net profit, reaching Rs 449 crore in Q4FY24. This growth was driven by strong sales in India, Brazil, and Germany. The net profit for the same period last year was Rs 287 crore. Revenues grew 10% YoY to Rs 2,745 crore in Q4FY24, compared to Rs 2,491 crore in Q4FY23. Operating earnings (EBITDA) rose 21% YoY to Rs 883 crore.
However, R&D spending dropped 7% YoY to Rs 139 crore in the fourth quarter.
For the full fiscal year FY24, Torrent’s revenue grew 12% YoY to Rs 10,728 crore, with a net profit of Rs 1,656 crore.
In India, which accounts for more than half of Torrent’s revenues, sales grew 10% YoY to Rs 1,380 crore in Q4FY24, thanks to successful new product launches. Torrent outperformed the Indian pharmaceutical market (IPM) growth rate of 9% in Q4FY24.
Torrent has 20 brands among the top 500 brands in the IPM, with 17 of them earning more than Rs 100 crore each.
In Brazil, revenues increased 17% YoY to Rs 372 crore. On a constant currency basis, revenues grew 11%, driven by new product launches. Torrent is the largest Indian drug maker by sales in Brazil.
In Germany, revenues were Rs 280 crore, up 11% YoY, due to new tender wins and better conversion of existing tenders.
In contrast, US revenues fell 6% YoY to Rs 262 crore due to a lack of new product launches. Torrent plans to launch new generic products in Q1FY25 and has 34 pending abbreviated new drug applications (ANDAs) in the US.
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