Torrent Pharma Tanks Over 15% Post Q3 Results; 90% Stocks on Nifty Pharma in Red

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Torrent Pharma Tanks Over 15% Post Q3 Results; 90% Stocks on Nifty Pharma in Red
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the pharmaceutical companyTorrent Pharmaceuticals (NS: TORP ) tanked 15.4% to Rs 2,673.5 apiece at 11:40 am on Thursday, after diving over 16% earlier in the session, in response to its poor earnings results in Q3, as the company’s margins suffered.

The drugmaker reported a 16% decline in its consolidated net profit at Rs 249 crore in Q3, on a YoY basis, even though its revenue from operations climbed 5.6% YoY to Rs 2,108 crore in the period.

The drugmaker has declared an interim dividend of Rs 25/share.

The stock recorded poor results in the quarter due to its US business, which pulled down profit figures. Its revenues in the US arm in Q3 dropped 20% YoY to Rs 235 crore and in Germany, it fell 10% YoY.

The company’s management has noted that it was led by longer delays in reinspection of US facilities due to the pandemic, in conjunction with high price pressures.

In India, the drugmaker’s sales rose 15% to Rs 1,072 crore, adding to continue holding a strong presence in the Indian market, as its delivery in the business exceeded the market’s growth in Q3.

Nifty Pharma was down 1.97% while writing this report, with only Cipla (NS: CIPL ) and Gland Pharma (NS: GLAD )trading in the green on the 20-scrip sectoral index.

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