Torrent Pharma Q4 Results Preview: Drug maker likely to clock 56% jump in net profit, margin may expand by 300 bps

Torrent Pharma (TORNTPHARM) Q4 Results Preview, Market News: Ahmedabad-headquartered Torrent Pharma is scheduled to report its financial results for the quarter as well as the year ended March 31, 2024, on Friday, May 24. Analysts expect the pharmaceutical company to stage a strong financial performance for the fourth and final quarter of FY24. 

According to Zee Business research, Torrent Pharma (TORNTPHARM) is estimated to register a consolidated net profit of Rs 447 crore for the January-March period, which translates into a jump of 56 per cent compared with the corresponding quarter a year ago. The analysts expect the drug maker to register 12 per cent year-on-year growth in revenue to Rs 2,796 crore for the March quarter. 

Torrent Pharma is expected to log Rs 893 crore in fourth-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA), up 23 per cent over the year-ago period, according to Zee Business research. The analysts peg the pharmaceutical company's margin, a key measure of profitability for businesses, to come in at 32 per cent for the March quarter, an improvement of 300 basis points (bps) over the year-ago period. 

Zee Business analysts expect the pharma company to clock growth to the tune of 12-13 per cent in revenue in its domestic business, and 12 per cent and 6.0 per cent in its operations in Germany and Brazil, respectively, They, however, anticipate an 11 per cent decline in the drug maker's US unit. 

Analysts will closely track the Ahmedabad-based pharmaceutical company's commentary on its upcoming launches. 

Torrent Pharma Q3 FY24 Results: A summary

For the quarter ended December 31, Torrent Pharma logged a consolidated net profit of Rs 443 crore and revenue of Rs 2,732 crore, up 51.7 per cent and 9.7 per cent compared with the year-ago period, respectively. 

Its margin improved by 300 bps to 32 per cent, according to a regulatory filing. 

Torrent Pharma (TORNTPHARM) Shares: Past performance

As of May 23, Torrent Pharma shares have rewarded investors with a return of almost 55 per cent in a year, outperforming a 25.6 per cent gain in the headline Nifty50 index and in line with a 53.9 per cent surge in the Nifty Pharma index.

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