(Reuters) – India’s Torrent Pharmaceuticals reported a smaller-than-expected second-quarter profit on Friday, hurt by the shutdown of an insulin manufacturing facility.
The Ahmedabad, Gujarat-based company reported a 17.4% rise in consolidated net profit to 4.53 billion rupees (nearly $54 million) for the quarter ended Sept. 30, missing analysts’ estimates of 4.97 billion rupees, per data compiled by LSEG.
Torrent, known for its calcium supplement Shelcal 500, manufactures drugs to treat diabetes, cancer and infections.
The revenue of its core segment, which treats chronic diseases, jumped 14%, boosting total revenue by 8.6% to 28.31 billion rupees.
KEY CONTEXT
Indian drugmakers, such as Torrent Pharma and peer Mankind Pharma, continue to benefit from steady domestic demand for their specialty drugs and those used to treat chronic illnesses.
However, Torrent Pharma’s sales were hurt during the quarter due to the closure of an insulin manufacturing facility in August, it said.
Diabetes is a significant contributor to the company’s portfolio, but it does not specify the share of these drugs in overall revenue.
The company expects to recover the shortfall in revenue in the fourth quarter, it said.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBIT Revenue Profit Mean # of Stock to Div
DA growth (%) growth rating* analysts price yield
(%) target** (%)
Torrent 47.34 27.07 12.63 28.23 Buy 27 1.01 0.84
Pharmaceuticals
Ltd
Mankind Pharma Ltd 42.04 29.45 14.61 16.87 Buy 15 1.03 NULL
Glenmark 29.64 16.97 13.15 235.70 Buy 10 1.09 0.15
Pharmaceuticals
Ltd
Sun Pharmaceutical 36.45 27.12 10.54 14.97 Buy 31 1.01 0.73
Industries Ltd
* 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 = 84.0570 Indian rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema)
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