Torrent Pharma rallies 9% on 1:1 bonus issue plan, dividend of Rs 23/share

In Q4, the company posted net loss of Rs 118 crore against profit of Rs 324 crore in the year ago quarter

Shares of Torrent Pharmaceuticals rallied 9 per cent to Rs 2,870 on the BSE in Thursday’s trade after the board recommended issue of bonus shares in the ratio of 1:1 i.e. one equity share for each fully paid up equity share held as on record date fixed for the purpose.

Besides, the board has also declared a final dividend of Rs 23 (460 per cent) per equity share of Rs 5 each including the special dividend of Rs 15 per equity share.

At 9:30 AM, the shares were ruling 8 per cent higher at Rs 2,852 apiece as against a 0.4 per cent gain in the benchmark S&P BSE Sensex.

Meanwhile, Torrent Pharma posted a net loss of Rs 118 crore for the fourth quarter ended March 31, 2022 (Q4FY22) on the back of headwinds in its EU business and discontinuation of liquids business in the US.  The company had registered a profit after tax (PAT) of Rs 324 crore in the corresponding quarter of last year.

The company's revenue, however, grew by 10 per cent to Rs 2,131 crore in Q4FY22 aided by strong growth momentum in branded generic markets. Torrent Pharma's revenue for Q4FY21 was Rs 1,937 crore.

The branded businesses contributed to 70 per cent of total revenues in Q4 and grew by 15 per cent with India and Brazil continuing on a strong footing. The US business registered sequential growth aided mainly by launch of a new product, the company said. "While our EU business faced some headwinds, we remain optimistic that the cost efficiency measures being taken will bring us back to growth in this market in the coming quarters," the management said.

As on March 31, 2022, Torrent Pharma had 57 abbreviated new drug applications (ANDAs) pending approval with US FDA and five tentative approvals received in Q4. During the quarter, six ANDAs were filed while one was approved.