Torrent Pharma - Q1 Marred By Higher Tax Rate: Dolat Capital
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Dolat Capital Report
Despite Torrent Pharmaceutical Ltd.'s in-line revenue growth of 5% YoY, 32% Ebitda margins, profit after tax was restricted at Rs 3.3 billion due to moving annual total credit recognition, leading to 20% miss versus our earnings estimate.
Sluggishness in sales continue to be led by muted exports performance.
U.S. at $36 million was lowest quarterly sales in last four years (29% YoY decline), Brazil (up 9% YoY) and Europe (up 6% YoY) coupled with India (18% YoY growth) led to 5% revenue growth.
High single digit price erosion in the U.S., absence of export incentives and adverse product mix (high contribution from acute sales) impacted Torrent Pharma's gross margins by 160 basis points YoY at 72.3%.
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