India`s Torrent Pharma posts higher Q3 profit on strong domestic demand
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Indian drugmaker Torrent Pharmaceuticals reported a 30% rise in its pre-tax profit for the third-quarter on Friday, buoyed by robust domestic demand.
Consolidated profit before exceptional items and tax grew to 5.43 billion rupees ($65.5 million) for the quarter ended Dec. 31 from 4.19 billion rupees a year earlier.
Torrent, which makes drugs for diabetes, pain management, cancer and infections, logged a one-time gain of 880 million rupees during the period from the sale of a U.S. facility, it said.
Revenue from operations rose nearly 10% to 27.32 billion rupees, supported by the company's domestic business, which contributed 52% to the total.
Sales from the domestic business, which focuses on developing chronic and sub?chronic therapies, grew 12% to 14.15 billion rupees.
The company's revenue has been growing consistently on the back of new product launches and its robust over-the-counter (OTC) drugs pipeline, according to analysts.
Torrent, which also makes OTC calcium supplement Shelcal 500, had been in talks to buy Cipla's founding family's 33.4% stake, according to a Reuters report last year. However, the matter was played down by Cipla CEO Umang Vohra in October.
Meanwhile, sales in Brazil - Torrent's second biggest revenue generator - climbed 26% to 3.12 billion rupees, while those in Germany rose 12%.
Torrent's results follow those of larger rivals Cipla and Dr Reddy's Laboratories, both of which beat third-quarter profit expectations, boosted by strong performances in North American markets.
Shares of Torrent were trading 0.4% higher after the results. They rose nearly 20% during the December quarter, outperforming a 9% gain in the Nifty pharma index.
