TORRENT PHARMA 2023-24 Annual Report Analysis

Tue, 2 Jul

TORRENT PHARMA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

TORRENT PHARMA Income Statement Analysis

• Operating income during the year rose 11.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.2% in FY24 as against 29.4% in FY23.
• Depreciation charges increased by 14.4% and finance costs increased by 6.0% YoY, respectively.
• Other income declined by 2.0% YoY.
• Net profit for the year grew by 33.0% YoY.
• Net profit margins during the year grew from 12.9% in FY23 to 15.4% in FY24.

TORRENT PHARMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	96,202	107,278	11.5%
Other income	Rs m	632	620	-2.0%
Total Revenues	Rs m	96,834	107,898	11.4%
Gross profit	Rs m	28,240	34,520	22.2%
Depreciation	Rs m	7,066	8,083	14.4%
Interest	Rs m	3,334	3,536	6.0%
Profit before tax	Rs m	18,472	23,521	27.3%
Tax	Rs m	6,019	6,957	15.6%
Profit after tax	Rs m	12,452	16,564	33.0%
Gross profit margin	%	29.4	32.2
Effective tax rate	%	32.6	29.6
Net profit margin	%	12.9	15.4

Dear Reader: If You Invest in Midcap Stocks, this is for You

TORRENT PHARMA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 54 billion as compared to Rs 54 billion in FY23, thereby witnessing an decrease of -0.4%.
• Long-term debt down at Rs 16 billion as compared to Rs 25 billion during FY23, a fall of 35.8%.
• Current assets rose 6% and stood at Rs 56 billion, while fixed assets fell 3% and stood at Rs 89 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 145 billion as against Rs 145 billion during FY23, thereby witnessing a growth of 0%.

TORRENT PHARMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	61,981	68,562	10.6
Current Liabilities	Rs m	54,473	54,253	-0.4
Long-term Debt	Rs m	24,962	16,038	-35.8
Total Liabilities	Rs m	144,682	145,055	0.3
Current assets	Rs m	53,137	56,115	5.6
Fixed Assets	Rs m	91,390	88,940	-2.7
Total Assets	Rs m	144,682	145,055	0.3

TORRENT PHARMA Cash Flow Statement Analysis

• TORRENT PHARMA's cash flow from operating activities (CFO) during FY24 stood at Rs 33 billion, an improvement of 37.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -28 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs 1 billion net cash flows seen during FY23.

TORRENT PHARMA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	23,681	32,661	37.9%
Cash Flow from Investing Activities	Rs m	-24,153	-1,679	-
Cash Flow from Financing Activities	Rs m	774	-27,796	-
Net Cash Flow	Rs m	1,101	3,266	196.6%

Current Valuations for TORRENT PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.9, an improvement from the EPS of Rs 36.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,805.2, stands at 57.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.8 times, while the price to sales ratio stands at 8.9 times.
• The company's price to cash flow (P/CF) ratio stood at 29.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	284.2	317.0
TTM Earnings per share	Rs	36.8	48.9
Diluted earnings per share	Rs	36.8	48.9
Price to Cash Flow	x	26.7	29.3
TTM P/E ratio	x	41.8	57.3
Price / Book Value ratio	x	8.1	10.5
Market Cap	Rs m	501,779	722,513
Dividends per share (Unadj.)	Rs	22.0	28.0

Ratio Analysis for TORRENT PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY24, from 1.0x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 7.7x during FY24, from 6.5x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 24.2% during FY24, from 20.1% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 32.0% during FY24, from 25.1% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 13.9% during FY24, from 10.9% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	7	6
Interest coverage	x	6.5	7.7
Debt to equity ratio	x	0.4	0.2
Return on assets	%	10.9	13.9
Return on equity	%	20.1	24.2
Return on capital employed	%	25.1	32.0

To see how TORRENT PHARMA has performed over the last 5 years, please visit here.

TORRENT PHARMA Share Price Performance

Over the last one year, TORRENT PHARMA share price has moved up from Rs 1,905.2 to Rs 2,805.2, registering a gain of Rs 900.0 or around 47.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 37,210.5 (down 0.1%). Over the last one year it has moved up from 25,814.5 to 37,210.5, a gain of 11,396 points (up 44.1%).

Overall, the S&P BSE SENSEX is up 24.5% over the year.

(To know more, check out historical annual results for TORRENT PHARMA and quarterly results for TORRENT PHARMA)