Pharma company Torrent Pharmaceuticals on Tuesday reported a 16 per cent year-on-year decline in its consolidated net profit for October-December quarter at Rs 249 crore as its US business registered a 20 per cent decline in revenue.
The company's total revenue rose 6 per cent to Rs 2,108 crore during the quarter, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 5 per cent to Rs 585 crore.
The pharma company's research and development spend rose 9 per cent during the quarter to Rs 123 crore.
Meanwhile, its India revenue grew 15 per cent to Rs 1,072 crore, driven by robust performance of top brands in all focus therapies. Revenue in Brazil also rose 5 per cent to Rs 183 crore, aided by market growth together with performance of top brands and new launches.
However, US business was affected by price erosion in the base business and lack of new approvals pending re-inspection of facilities. The company's US revenue declined 20 per cent to Rs 235 crore, while revenue in Germany was also down 10 per cent to Rs 237 crore as the business was impacted due to muted market growth and increasing competition in Tender segment.
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"Due to the prolonged delays in reinspection of our US facilities on account of the pandemic, coupled with higher than anticipated pricing pressure, our US business has been adversely affected during this quarter. We remain hopeful of our prospects in the US market as soon as the facilities are reinspected," Torrent Pharma Chairman Samir Mehta said.
He said the India business continues to be on a strong footing delivering significantly higher than market growth during the quarter
"We have initiated cost optimisation measures which should help us get back on track with respect to margins in the upcoming quarters," Mehta added.
The company's board also approved an interim dividend of Rs 25 per share during its meeting on Tuesday. Shares of the company closed 1.79 per cent higher at Rs 3,160.55 on the BSE on Tuesday.
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