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Analyst Meet / AGM - Analyst Meet

Expects Negligible impact of new pricing Policy

Torrent Pharmaceuticals

29-Jul-2013, 11:19
Torrent Pharmaceuticals announced the results for the quarter ended June 2013 and held a conference call on 27^th July 2013 to discuss the results and future growth strategies. The key takeaways of the call are as follows.
Highlights of the call:

The Revenues grow at 27% YoY to 972 crore for the quarter ended June 2013 driven by the robust growth from International business (28% to Rs 539 crore) coupled with moderate growth from Domestic business (12% to Rs 312 crore). The Europe & US markets key contributors to growth of international operations.
It received one time Patent Assignment income of Rs 42 crore during the quarter, adjusting which revenue growth stood at 21%.
The forex loss Rs 13 crore (included in other expenses) majorly from the revenue hedges during the quarter.
The domestic market growth continues to be subdued due to uncertainty prevailing on the price notification and implementation time under DPCO 2013. However, it expects marginal impact for the FY'14 by DPCO 2013.
The key growth drivers for domestic market are - Consolidate entry into newer geographies and therapeutic areas, Brand Building by focusing on the Brands through Divisionalisation and New Product Introductions including filling of Portfolio Gaps.
The sales from Brazil declined by 2% to Rs 133 crore for the quarter ended June 2013 impacted by price reductions.
It plans generic generic products for the Brazilian market and expects to launch 4-5 products in the near terms, further around 20-30 products in the pipeline
The Sales from the US market grew by robust 43% to Rs 113 crore for the quarter ended June 2013. Adjusting for the one time outlicensing income received in last year, it grew by 53%; Constant Currency 48% during the quarter.
It received 43 ANDA approvals (including 7 tentative approvals) and pipeline consists of 24 pending approvals and 34 products under development. Further, it expects to launch 5 to 6 products next year in the US market.
The Sales from the Europe market grew by sharp 49% to Rs 196 crore during the quarter driven by the Heumann and Europe (dossier business).
The Capex plan for the expanding the facilities is around Rs 1100 crore (Rs 300 crore already spent) up to FY'17.
The tax rate expected to be in the range of 22-24% for the FY'14
The Current outstanding hedges are at USD 200-250 million with forward rate of Rs 58-59 per dollar. It generally hedges minimum 6-12 months forward revenues.