Torrent Pharma plunges over 8% as Q3 results disappoint

MUMBAI: Shares of Torrent Pharma plunged over 6 per cent in trade following disappoint set of numbers for the quarter ended December.:

The company reported a net profit of Rs 167 crore, up 6 per cent, from a net profit of Rs 158 crore, in the corresponding quarter last fiscal. While PAT was higher than ET Now poll estimate of Rs 164 crore, it included higher other income of Rs 65 crore.

Net sales increased to Rs 1156 crore, up 17 per cent, from Rs 990 crore, in year-ago period.

EBITDA rose to Rs 240 crore, up 12 per cent, from Rs 215 crore, but was lower than poll estimate of Rs 282 crore.

Margins fell to 20.8 per cent vs 21.7 per cent, Y-o-Y. ET Now poll estimated it to be 22.6 per cent.

“Although the 3QFY15 results appear disappointing, adjusted for forex-led losses in sales for Brazil (Rs 20 crore) and Europe (Rs25 crore), the results would be broadly in line with consensus estimates with sales of Rs 1,210 crore and EBITDA of Rs 277 crore,” said Ambit Capital report.

“Excluding the forex impact, the results missed our EBITDA estimates by 10 per cent which would be completely offset by the higher-than-expected other income and lower-than-expected tax rate. Hence, on a net basis, the revision in our FY15E estimates would vary from a downgrade of 2-5 per cent depending on the management's responses to the questions above,” the report added.

At 11:20 a.m.; the stock was at Rs 1122.40, down 7.17 per cent, on the BSE. It plunged 8.34 per cent to touch intraday low of Rs 1,108.15.