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Torrent Pharma share gains 6% post Q4 earnings

For the fiscal year 2021, net profit stood at Rs 1,252 crore as compared to Rs 1,052 crore in FY20. Revenue from operations grew 0.8 per cent to Rs 8,005 crore from Rs 7,939 crore in the previous year

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Share of Torrent Pharma rose 6 per cent to hit an intraday high of Rs 2,891.55 after the company reported a 3 per cent rise in Q4 net profit. The company reported a consolidated net profit of Rs 324 crore for the quarter ended March 31 compared with a net profit of Rs 314 crore in Q4 FY20.

The stock has gained 13 per cent in one year and risen 0.83 per cent since the beginning of this year. Torrent Pharma share trades higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. Market cap of the firm rose to Rs 47,844.34 crore.

Revenue from operations declined 0.46 per cent to Rs 1,937 crore in the last quarter against Rs 1,946 crore a year ago. The company informed that the growth was driven by continued recovery in chronic, sub-chronic, and acute therapies, and aided by market share gains in high potential new launches.

Total expenses stood at Rs 1,593 crore for the quarter ended March 31, down 4.5 per cent as against Rs 1,668 crore in the year-ago period.

The company further added sales were impacted by price erosion on base business and the base impact of Sartan portfolio discontinuation.

For the fiscal year 2021, net profit stood at Rs 1,252 crore as compared to Rs 1,052 crore in FY20. Revenue from operations grew 0.8 per cent to Rs 8,005 crore from Rs 7,939 crore in the previous year.

Motilal Oswal maintained a neutral rating on the stock. The brokerage house expects 14% earnings CAGR, led by 11%/17%/8%/11% CAGR in DF/US/Brazil/Germany sales, partially impacted by 70bp margin contraction, with normalization in opex related to its sales force in the DF segment.

Recently, Torrent Pharmaceuticals Limited (Torrent) today announced that it has entered into a royalty-free, non-exclusive voluntary licensing agreement with Eli Lilly and Company, joining a group of leading Indian pharmaceutical companies for Baricitinib for Covid-19 in India. Under the agreement, Lilly has provided the license to manufacture and distribute Baricitinib to Torrent for India along with Lilly's other license partners.

Speaking on the agreement, Aman Mehta, Chief Marketing Officer for Torrent said, "We are pleased to partner and work closely with Lilly to bring this treatment to market. This partnership further strengthens our efforts to help the nation fight the pandemic and provide quality treatment to patients. Torrent Group stands firmly committed to support the nation during this time of crisis."