India’s Torrent Pharma posts profit boost on strong demand for chronic illness drugs

Audio By Carbonatix

(Reuters) -Indian drugmaker Torrent Pharma reported a 30.5% rise in its second-quarter profit on Friday, driven by strong domestic demand for its cardiovascular and anti-diabetic drugs.

The company reported consolidated net profit of 5.91 billion rupees ($67.24 million) for the quarter ended September 30.

Overall revenue rose 14.3% to 33.02 billion rupees. 

For further earnings highlights, click here.

KEY CONTEXT

The Indian pharmaceutical market grew 7.3% in value in September, driven by strong sales in cardiovascular, anti-diabetic, and anti-infectives therapies, according to data from PharmaRack.

The demand boosted Torrent Pharma’s domestic revenue, which accounts for more than half of overall revenue, by 12% to 18.2 billion rupees.

To further boost sales, Torrent Pharma launched new products and has diversified its portfolio by buying a majority stake in JB Chem and Pharma.

PEER COMPARISON  

    Valuation Estimates Analysts’

(next 12 (next 12 sentiment

months) months) 

  RIC PE EV Pr Reve Prof Mea # Stock Div

/E ic nue it n of to yie

BI e/ grow grow rat ana price ld

TD Sa th th ing lys target (%)

A le (%) (%) ts

s

Torrent 43. 26 7. 12.3 23.7 BUY 29 0.91 0.9

Pharmace 88 .0 80 0 4 0

uticals  8

Mankind 42. 25 6. 15.9 18.5 BUY 16 0.88 0.0

Pharma  07 .9 49 4 7 4

5

J B 29. 19 5. 11.3 18.0 BUY 11 0.83 0.7

Chemical 85 .5 43 7 6 4

s and 6

Pharmace

uticals 

Sun 31. 21 6. 9.80 8.18 BUY 37 0.86 0.9

Pharmace 68 .5 22 7

utical 1

Industri

es 

 * Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT

JULY TO SEPTEMBER STOCK PERFORMANCE

— All data from LSEG

— $1 = XX Indian rupees

($1 = 87.8950 Indian rupees)

(Reporting by Kashish Tandon and Mridula Kumar in Bengaluru; Editing by Janane Venkatraman)