(Reuters) -Indian drugmaker Torrent Pharmaceuticals missed fourth-quarter profit and revenue estimates on Tuesday, hurt by currency depreciation in Brazil, its top overseas market by revenue.
The company reported consolidated net profit of 4.98 billion rupees ($58.2 million) for January-March quarter, up 11% from a year earlier. Analysts, on average, expected a profit of 5.19 billion rupees, according to data compiled by LSEG.
Revenue from operations rose 8% to 29.59 billion rupees, compared with analysts’ average estimate of 29.85 billion rupees.
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KEY CONTEXT
Torrent had flagged earlier this year that revenues are declining in Brazil — its biggest overseas market by revenue, followed by Germany and the U.S. — due to steep depreciation of the real.
A hit from the weakening currency overshadowed the boost from resuming insulin shipments from its Gujarat facility it shuttered last August for maintenance purposes.
In India, Torrent’s biggest market by revenue and where it competes with peers such as Mankind Pharma, it has benefited from steady demand for its specialty and chronic illness drugs.
Torrent offers drugs used to treat cancer, infections and diabetes.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to
TDA growth (%) growth rating* analyst price
(%) s target**
Torrent 43.64 25.54 13.07 31.19 Hold 24 0.94
Pharmaceuticals
Ltd
Mankind Pharma 46.77 24.33 22.19 15.18 Buy 13 0.92
Ltd
Glenmark 23.15 13.62 11.80 24.48 Buy 9 0.86
Pharmaceuticals
Ltd
Sun 30.86 22.90 10.85 13.55 Buy 31 0.85
Pharmaceutical
Industries Ltd
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY-MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 85.5660 Indian rupees
(Reporting by Hritam Mukherjee and Nandan Mandayam in Bengaluru; Editing by Sahal Muhammed)
