☎️ Con-call Highlights  - #TorrentPharmaceuticals Ltd

**Torrent Pharmaceuticals Limited (Q3 FY25 Earnings Call & Presentation Key Takeaways)**

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**Current Financial Performance (Q3 FY25):**

- **Revenue:** Rs.2,809 crore, reflecting a 3% YoY increase and 7% YTD December growth.
- **Operating EBITDA:** Improved to Rs.944 crore, marking a 5% YoY growth.
- **Operating EBITDA Margin:** Stable at 32.5%.
- **Impact of Insulin Disruption & BRL Depreciation:** A combined 4% negative impact on revenue growth.
- **Normalized Revenue Growth:** 7% when excluding Insulin and BRL impacts.
- **Normalized Operating EBITDA Growth:** 12% post-adjustments.
- **Interim Dividend:** Recommended at Rs.26 per equity share (520% of face value).

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**Current Operational Performance (Q3 FY25):**

- **Branded Market Share:** Dominated with 76% of overall revenue.
  
- **India:**
  - Achieved 12% YoY growth and 13% YTD December growth.
  - Chronic segment showed robust growth at 14% compared to the market's 10%.
  - Cardiac segment excelled with a 16% growth rate, surpassing the market's 10%.
  - Broadened consumer health business coverage to 75,000 outlets (up from 72,000 in Q2).
  - Strengthened field force to 6,200, up from 6,000 in Q2.
  
- **Brazil:**
  - Attained 10% constant currency growth and 12% YTD December growth.
  - Unfavorable currency depreciation impacted revenue by ~17%.
  
- **Germany:**
  - Recorded a 4% constant currency growth and 7% YTD December growth.
  - Secured new tenders promising future growth.
  
- **US:**
  - Constant currency revenue tallied at $32 million, representing a 3% YoY decline, yet stable quarter-on-quarter.
  - Received an EIR with VAI classification for the manufacturing facility in Seymour.

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**Future Outlook:**

- **Insulin Business:** Anticipates full recovery in Q4 FY25, with additional revenue potential.
- **BRL Depreciation:** Projected to persist for several quarters; expected higher price increases sanctioned by the Brazilian government in April.
- **Germany:** Progress anticipated through enhanced tender wins from Q2 of next year onward.
- **US:** Gradual momentum expected; new filings projected to contribute significantly in the long term.
- **India:** Continuing to outperform market growth with strategic focus on market share in key therapies, new launches, productivity enhancement, and consumer health division expansion.

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**Concerns:**

- **BRL Depreciation:** Despite hedging, negatively affecting reported revenue and margins.
- **US Growth:** Slower recovery trajectory than expected.
- **India Market Volume Growth:** Subdued overall market growth, though Torrent's target segments remain resilient.

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**Other Important Points:**

- **India Business Volume, Price, New Products Breakdown:** 1.5% volume, 8% price, 2.5% new products.
- **Debt Position:** Achieved a net debt-to-EBITDA ratio of 0.51 as of December; aims to be net cash positive by FY27.
- **Tax Strategy:** Transitioning to new tax regime with a 25% effective rate starting FY26.
- **GLP-1 (Glucagon-like peptide-1) Launch Plans:** Plans to be at the forefront of launches in both India and Brazil; ongoing clinical trials in India. Injection products to be partnered, orals managed in-house. While optimistic, acknowledging uncertainties around market dynamics and pricing.

* Machine generated highlights, exercise diligence

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