{"id":155267,"date":"2023-10-24T10:42:02","date_gmt":"2023-10-24T14:42:02","guid":{"rendered":"https:\/\/44.250.171.167\/?p=155267"},"modified":"2023-10-24T10:42:03","modified_gmt":"2023-10-24T14:42:03","slug":"torrent-pharmaceuticals-ltd-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/torrent-pharmaceuticals-ltd-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Torrent Pharmaceuticals Ltd Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Torrent Pharmaceuticals Ltd (TORNTPHARM) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Revenue Growth Across Key Markets<\/strong>\n<ul>\n<li>India business revenue grew 18% year-on-year; 12% growth excluding Curatio acquisition.<\/li>\n<li>Strong constant currency revenue growth of 8% in Germany and 23% in Brazil.<\/li>\n<li>US revenues declined due to loss of low-margin business and supply issues.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin Expansion<\/strong>\n<ul>\n<li>Operating EBITDA margin increased to 31% from 22%.<\/li>\n<li>EBITDA margins for India business 14% higher than pre-Curatio acquisition levels.<\/li>\n<li>Focus on improving cost efficiency and streamlining processes in US business.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Product Launches<\/strong>\n<ul>\n<li>Commercialized first oncology product in US from new oral onco facility.<\/li>\n<li>Launched niche derma product in US.<\/li>\n<li>5 product launches in Germany in H1.<\/li>\n<li>2 more CNS products and 2 cardio-diabetes products to be launched in Brazil<\/li>\n<\/ul>\n<\/li>\n<li><strong>Brazil Business Growth And Outlook<\/strong>\n<ul>\n<li>Brazil business grew 17.8% in Q2 with the market at 10%, an outperformance of almost 8%.<\/li>\n<li>Added 26 reps in CNS division, expanding reach and balancing portfolio.<\/li>\n<li>Branded generic growth of 13% versus market growth of 8%.<\/li>\n<li>Launching 4 more products in Brazil by end of financial year.<\/li>\n<li>Torrent expects to maintain 5% plus outperformance driven by new launches and penetration<\/li>\n<\/ul>\n<\/li>\n<li><strong>India Business Growth And Outlook<\/strong>\n<ul>\n<li>Torrent&#8217;s India business growth was 12% in Q2, with 7% from price increases and the rest from volume and new product launches.<\/li>\n<li>Volume growth was muted at just 1-1.5%.<\/li>\n<li>Torrent believes the market is growing 7-8%, higher than external reports, and expects market data to normalize in a few quarters.<\/li>\n<li>The company believes the muted volume trends are temporary, not structural.<\/li>\n<\/ul>\n<\/li>\n<li><strong>M&amp;A Strategy And Priorities<\/strong>\n<ul>\n<li>Torrent open to acquisitions but remains focused on India where it has a track record of successful integration.<\/li>\n<li>For acquisitions, comfortable with starting net debt\/EBITDA of 3x, falling to 1.5-2x over 2 years.<\/li>\n<li>Focused on cash flow generation to service debt and fund growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capital Allocation<\/strong>\n<ul>\n<li>Majority of capital allocation focused on India, estimated at about 70-80%.<\/li>\n<li>Much lower allocation to Brazil and other international markets due to lower familiarity.<\/li>\n<li>Leverage comfort depends on cash flow generation of acquisition target.<\/li>\n<\/ul>\n<\/li>\n<li><strong>US Business Performance<\/strong>\n<ul>\n<li>US business declined to $30 million quarterly run rate in Q2 vs previous quarters.<\/li>\n<li>Decline was due to single digit price erosion and loss of some contracts and supply issues.<\/li>\n<li>Going forward, US sales expected to be $30-35 million range per quarter.<\/li>\n<li>Manufacturing costs were capitalized in July, and there won&#8217;t be incremental costs in the future.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Traction In Digital Marketing Initiatives<\/strong>\n<ul>\n<li>Seeing positive results so far in digital marketing pilots for brands like Tedibar and Unienzyme.<\/li>\n<li>Significant increase in Shelcal sales in markets with media presence and distribution push.<\/li>\n<li>Marketing and field force expansion stabilized, so no further cost increases expected.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India Pharma Industry Growth<\/strong>\n<ul>\n<li>Industry growth to have a slight slowdown from the historical rate of around 10%.<\/li>\n<li>Attributes this slowdown to structural changes such as trade generics and Jan Aushadhi, but believes it won&#8217;t be a significant threat.<\/li>\n<li>Expects 0.5% reduction in IPM growth due to increased generic penetration, but not a major concern.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Prescription Practices in India<\/strong>\n<ul>\n<li>Torrent expects branded generics will continue to exist even in a hybrid system.<\/li>\n<li>Emphasized on developed markets also having a branded generic market alongside generics.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Torrent Pharmaceuticals Ltd (TORNTPHARM) Q2 FY24 Earnings Concall Revenue Growth Across Key Markets India business revenue grew 18% year-on-year; 12% growth excluding Curatio acquisition. Strong constant currency revenue growth of 8% in Germany and 23% in Brazil. US revenues declined due to loss of low-margin business and supply issues. Margin Expansion Operating [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5747],"tags":[10169,8157,1115],"class_list":["post-155267","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-healthcare-stocks","tag-earnings","tag-healthcare","tag-pharmaceuticals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":172440,"url":"https:\/\/alphastreet.com\/india\/torrent-pharma-q2-fy26-earnings-results\/","url_meta":{"origin":155267,"position":0},"title":"Torrent Pharma Q2 FY26 Earnings Results","author":"Chirag Gupta","date":"November 17, 2025","format":false,"excerpt":"Torrent Pharmaceuticals Ltd is one of the leading Indian Pharmaceutical Company engaged in research, development, manufacturing and marketing of generic pharmaceutical formulations. \u00a0 Q2 FY26 Earnings Results: Revenue from Operations: \u20b93,302 crore, up 14% YoY from \u20b92,889 crore EBITDA: \u20b91,083 crore, up 15.3% YoY; EBITDA margin expanded to 32.8% (from\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Torrent Pharmaceuticals Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Torrent-Pharmaceuticals-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Torrent-Pharmaceuticals-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Torrent-Pharmaceuticals-Q2-FY26-Earnings-Results.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Torrent-Pharmaceuticals-Q2-FY26-Earnings-Results.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Torrent-Pharmaceuticals-Q2-FY26-Earnings-Results.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Torrent-Pharmaceuticals-Q2-FY26-Earnings-Results.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":135122,"url":"https:\/\/alphastreet.com\/india\/torrent-pharmaceuticals-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155267,"position":1},"title":"Torrent Pharmaceuticals Ltd Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"October 25, 2022","format":false,"excerpt":"Key highlights from Torrent Pharmaceuticals Ltd (TORNTPHARM) Q2 FY23 Earnings Concall \u00a0Q&A Highlights: [00:06:41]Damayanti Kerai from HSBC asked about split of India business growth in 2Q in terms of \u00a0price, volume and new launches. Sudhir Menon CFO replied that the company had 19% growth and the breakup of 19% is\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":139387,"url":"https:\/\/alphastreet.com\/india\/torrent-pharmaceuticals-ltd-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155267,"position":2},"title":"Torrent Pharmaceuticals Ltd Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"January 27, 2023","format":false,"excerpt":"Key highlights from Torrent Pharmaceuticals Ltd (TORNTPHARM) Q3 FY23 Earnings Concall Management Update: [00:05:39] TORNTPHARM said the company expects to file about 5-6 products in FY23. 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Formulations revenue, excluding Puerto Rico, grew 29% YoY to INR5,968 crores. US formulations revenue, without Puerto Rico, grew 35.7% year-on-year to INR3,385\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":156221,"url":"https:\/\/alphastreet.com\/india\/glenmark-pharmaceuticals-limited-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155267,"position":5},"title":"Glenmark Pharmaceuticals Limited Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 15, 2023","format":false,"excerpt":"Key highlights from Glenmark Pharmaceuticals Limited (GLENMARK) Q2 FY24 Earnings Concall Financial Results Revenue increased 6.3% YoY to INR35,879 million. 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