Key Points

Torrent Pharmaceuticals experienced a slight dip in Q4 net profit while maintaining robust revenue growth across different markets. The company's India business performed strongly, with a 12% revenue increase and positive performance in focus therapies. In a significant leadership move, Aman Mehta, son of Torrent Group Chairman Samir Mehta, is set to become the new Managing Director. The company is also exploring fundraising options, seeking shareholder approval to raise up to Rs 5,000 crore through various financial instruments.

Key Points: Torrent Pharma Q4 Profit Dips Slightly Amid Revenue Growth

  • Q4 net profit marginally falls to Rs 498 crore
  • India business revenue grows 12%
  • US market segment expands 15%
  • Aman Mehta to become new Managing Director
2 min read

Torrent Pharma's Q4 net profit falls marginally to Rs 498 crore, revenue up

Torrent Pharmaceuticals reports marginal Q4 profit decline while experiencing revenue increase across key markets and announcing leadership transition

"Our strategic focus continues to drive growth across multiple geographies - Torrent Pharma Management"

Mumbai, May 21

Torrent Pharmaceuticals on Wednesday reported a 0.99 per cent quarter-on-quarter (QoQ) decline in its net profit for the fourth quarter (Q4) of FY25, with earnings dropping to Rs 498 crore from Rs 503 crore in the previous quarter (Q3 FY25).

The homegrown pharma company's total expenses climbed to Rs 2,252 crore, an increase of nearly 4.70 per cent on sequential basis and 4.99 per cent year-on-year (YoY).

The rise was driven by higher costs across key segments. The cost of materials consumed increased by 8.65 per cent to Rs 402 crore, while employee benefits expense rose by 2.19 per cent to Rs 561 crore.

Depreciation and amortisation expense inched up 1.01 per cent to Rs 201 crore, and other expenses grew by 4.46 per cent to Rs 703 crore.

Despite the dip in net profit, the company's revenue showed steady growth. Revenue from operations stood at Rs 2,959 crore in Q4 FY25, up approximately 5.34 per cent from Rs 2,809 crore in Q3.

The total income also rose by around 4.70 per cent, reaching Rs 2,941 crore from Rs 2,842 crore in Q3, according to its stock exchange filing.

In terms of market performance, India business revenue rose 12 per cent to Rs 1,545 crore, mainly due to strong performance in focus therapies.

The US business also did well, growing 15 per cent to Rs 302 crore. Germany revenue grew modestly by 2 per cent to Rs 286 crore.

However, revenue from Brazil fell 6 per cent to Rs 351 crore, impacted by the depreciation of the Brazilian Real.

As part of its succession planning, Torrent Pharma announced the appointment of Aman Mehta, the elder son of Torrent Group Chairman Samir Mehta, as Managing Director.

His term will begin on August 1. The company highlighted his leadership in expanding market share, turning around cardiac and diabetes portfolios, and launching the consumer health division.

Additionally, the company's board has recommended seeking shareholder approval to raise up to Rs 5,000 crore through equity shares or convertible instruments like QIP or other modes in the upcoming Annual General Meeting (AGM).

- IANS

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Reader Comments

R
Rajesh K.
Mixed results but overall not bad! The revenue growth is promising, especially in India and US markets. The Brazil setback is temporary due to currency issues. Torrent has been a reliable Indian pharma brand - hope they maintain quality while expanding. 👍
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Priya M.
Concerned about rising material costs (8.65% increase!) and other expenses. Hope the new MD can streamline operations better. The Rs 5000 crore fundraising plan seems ambitious - hope it's used wisely for R&D rather than just expansion.
A
Amit S.
Good to see an Indian pharma company holding its ground globally. 12% growth in domestic market shows trust in Made in India medicines. But why always family succession? There are many qualified professionals who could lead too.
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Sunita R.
My father has been using Torrent's cardiac medicines for years. Their quality is consistent. The minor profit dip doesn't worry me as long as they maintain their standards. Hope the new leadership keeps patient welfare as priority over just profits.
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Vikram J.
The 15% US growth is impressive! Shows Indian pharma can compete globally. But they need to watch the employee costs - pharma is knowledge industry, can't cut corners there. Overall, aatmanirbhar company making us proud 🇮🇳
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Neha P.
Interesting to see the focus on diabetes and cardiac portfolios. With India being diabetes capital, this is smart business strategy. Hope they also invest more in affordable generics for common people, not just premium therapies.

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