Torrent Pharma posts Rs 118 cr Q4 loss on impairment provision

The company had reported a net profit of Rs 324 crore in the January-March period of 2020-21 fiscal

AgenciesUpdated: Wednesday, May 25, 2022, 09:44 PM IST
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The company said its board has approved to seek shareholder nod to raise up to Rs 5,000 core through various means including Qualified Institutional Placement. / Representative image |

Torrent Pharma on Wednesday said its consolidated loss stood at Rs 118 crore for the fourth quarter ended March 2022 on account of impairment provision of Rs 425 crore related to discontinuation of liquids business in the US.

The company had reported a net profit of Rs 324 crore in the January-March period of 2020-21 fiscal. Revenue rose to Rs 2,131 crore during the period under review as against Rs 1,937 crore in the same period of FY21.

For the entire 2020-21 fiscal, the drug major posted a consolidated net profit of Rs 777 crore as compared with Rs 1,252 crore in the preceding fiscal. Revenues rose to Rs 8,508 crore last fiscal. The same stood at Rs 8,005 crore in FY21.

''The branded businesses contributed to 70 percent of total revenues in Q4 and grew by 15 percent with India and Brazil continuing on a strong footing. The US business registered sequential growth aided mainly by launch of a new product,'' Torrent Pharma Chairman Samir Mehta said in a statement.

While the EU business faced some headwinds, the drug maker remains optimistic that the cost efficiency measures being taken will bring it back to growth in this market in the coming quarters, he added.

''We have taken a difficult decision of discontinuing our liquids business in the US. We believe the incremental investments required will exceed the potential economic benefits in this segment due to changing market conditions, as economics and competitive intensity have turned unfavourable compared to the time of conceptualisation,'' Mehta noted.

The company said its board has approved to seek shareholder nod to raise up to Rs 5,000 core through various means including Qualified Institutional Placement (QIP).

The company's board has also approved a final dividend of Rs 23 per equity share of Rs 5 each, including the special dividend of Rs 15 per share.

The final dividend amount, if declared by the shareholders, is proposed to be paid/dispatched on or around August 4, 2022, it added.

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