Torrent Pharma Concall was today at 5:30 pm.
Here are highlights of the Conference Call π
@arpit971 @punitbansal14 @kothariabhishek @caniravkaria
Here are highlights of the Conference Call π
@arpit971 @punitbansal14 @kothariabhishek @caniravkaria
Updates:
β’ Strong recovery in branded generic market
β’ Doctor spending time in clinic increase
β’ Growth in Chronic segment improved
β’ Share of Chronic and sub chronic in 77% which was 71% in last year same quarter
β’ Strong recovery in branded generic market
β’ Doctor spending time in clinic increase
β’ Growth in Chronic segment improved
β’ Share of Chronic and sub chronic in 77% which was 71% in last year same quarter
β’ Company is Continue to gain market share in cardio vascular space.
β’ Company is trying reducing focus on tender business. Other from tender business has seen 10% growth.
β’ In Q3 company launching new brands.
β’ US growth was impacted due to price erosion , and other factors
β’ Company is trying reducing focus on tender business. Other from tender business has seen 10% growth.
β’ In Q3 company launching new brands.
β’ US growth was impacted due to price erosion , and other factors
β’ Domestic growth for quarter is 1 percent
β’ Geographic revenue share updates in image.
β’ Business Segment growth:
- 5% chronic
- 6% sub chronic
- (-9%) in acute segment
β’ Brandwise growth is expected to perform well
β’ Geographic revenue share updates in image.
β’ Business Segment growth:
- 5% chronic
- 6% sub chronic
- (-9%) in acute segment
β’ Brandwise growth is expected to perform well
β’ Market growth in chronic is more than market and few branded drugs are seeing incremental growth.
β’ Price erosion impact was lot. This mainly came from high competition.
β’ Q1 has some higher cost, and few items which are non recurring like of forex loss, donation to PM care.
β’ Price erosion impact was lot. This mainly came from high competition.
β’ Q1 has some higher cost, and few items which are non recurring like of forex loss, donation to PM care.
Impact on Gross Margin:
Inventory is higher because the uncertain which segment will pick, hence higher provision taking for the same.
Higher provisioning impacted in gross margin
Product Launches:
β’ Current year launches is 9 and more 4-5 are expected to come in this year.
Inventory is higher because the uncertain which segment will pick, hence higher provision taking for the same.
Higher provisioning impacted in gross margin
Product Launches:
β’ Current year launches is 9 and more 4-5 are expected to come in this year.
Brazil Market: Company feels no problem in market.
β’ It's double digit growth market
β’ Currency shows bit problem
β’ Working Capital: Working expect to get normalized in coming period and there has been no structural change in industry.
β’ It's double digit growth market
β’ Currency shows bit problem
β’ Working Capital: Working expect to get normalized in coming period and there has been no structural change in industry.
Q: Cost of Finance of Co. is high compare to competitor
Mgmt: This is mainly because of domestic and foreign loan. Co. take loan mainly domestically, while other have foreign loan as well.
While main focus of company is to hedge receipt side. Company has hedge 100% of receivable.
Mgmt: This is mainly because of domestic and foreign loan. Co. take loan mainly domestically, while other have foreign loan as well.
While main focus of company is to hedge receipt side. Company has hedge 100% of receivable.
Staff Expense: There has been little growth of labor on the basis of YoY, and this would be base now.
In Brazil employee expense is high, however due to currency translation, the expense came down in this quarter.
In Brazil employee expense is high, however due to currency translation, the expense came down in this quarter.
Inventory: Inventory and Payable is bit higher.
β’ Increased API inventory to 6-7 months to 12 moths
β’ Couple of quarters will take to get normalize if second phase of COVID comes there may be issue.
β’ While inventory was rolled up due to budget crunch from government
β’ Increased API inventory to 6-7 months to 12 moths
β’ Couple of quarters will take to get normalize if second phase of COVID comes there may be issue.
β’ While inventory was rolled up due to budget crunch from government
Inventory write off: There was budget crunch from government.
Government usually gives order but due to budget crunch, the order was cancelled this year, and they are allowed to cancel the order as well. While if company didn't supplied the medicine on time there is margin cut.
Government usually gives order but due to budget crunch, the order was cancelled this year, and they are allowed to cancel the order as well. While if company didn't supplied the medicine on time there is margin cut.
β’ Branding and promotional activities are up.
β’ Patience footfalls have gone up.
β’ Improvement in clinic business can lead the business.
β’ Patience footfalls have gone up.
β’ Improvement in clinic business can lead the business.
Conclusion: Business is showing slight recovery.
β’ Margins was impacted a lot due to health competition.
β’ Slow growth in clinics and patients footfalls.
β’ Next round of covid can hurt as well.
β’ Company is slowly moving from tender business.
β’ More 4-5 launch this year.
β’ Margins was impacted a lot due to health competition.
β’ Slow growth in clinics and patients footfalls.
β’ Next round of covid can hurt as well.
β’ Company is slowly moving from tender business.
β’ More 4-5 launch this year.
β’ β’ β’
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