Torrent Pharmaceuticals Ltd Q2 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Vishal Biraia - Aviva Life Insurance Company India Ltd. - Analyst : Sir, a question on the U.S. base as to how is the -- I mean, with the price erosion on the base portfolio...

Question: Vishal Biraia - Aviva Life Insurance Company India Ltd. - Analyst : Is it better now?

Question: Vishal Biraia - Aviva Life Insurance Company India Ltd. - Analyst : Just a second. Hello. Sorry for the inconvenience. Sir, a question on the base portfolio of the U.S. Could you elaborate a bit more on the price erosion piece as to how it's been? Is it more than what you saw in the last quarter? And what is your view on the coming ANDA in the upcoming quarters?

Question: Vishal Biraia - Aviva Life Insurance Company India Ltd. - Analyst : Okay. Fair enough. Sir, one question on the overhead expenses that we've reported of INR 465 crores for the quarter. So this is a decline sequentially also. So I mean, what is driving this saving? And what proportion of this would be sustainable? Some perspectives on this. Because, I mean, from one, we didn't expect a sequential decline, so, yes.

Question: Vishal Biraia - Aviva Life Insurance Company India Ltd. - Analyst : Okay. And just one last question. On the 3% growth in revenues from other countries, last quarter, this was very strong. So what would have -- I mean, what impacted this quarter, some views on this?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : My first question is on the India business. If you can give us some color in terms of how...

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Is it better?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : If so, I will get beck in the queue.

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : Sudhir, on the other expenses, we were at 27%, 28% of revenues till about last year. At the current date, we're at about 23% or so of revenues. So is there anything to structurally change in the business with the way probably we're doing things now in the new environment, which has sort of brought the other expenses down to this level? Because you are -- our newly hedges is like more of a sustainable number going forward?

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : But usually -- I guess, to, sort of, push the point because it's a very sharp reduction we're talking about here. But I mean, you don't see any sustainable sales coming out on the various aspects of other expenses. The way you are doing things now is just -- you're seeing just disappointing this match at this point of time. And we'll still probably go back to 24%, 28% of revenues?

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : Okay. And secondly a associated point, our staff expense growth also has been on the lower side. Obviously, we're not adding field force in the domestic market. Is there -- so how should one look at that sort of cost aspect from a modeling perspective?

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : As in the whole -- as a Y-o-Y number I'm saying, on a Y-o-Y basis?

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : And one thing on -- lastly on the business -- on the India business. How should we look at this new product launch engine going forward? And what kind of revenue -- from a growth contribution perspective, how should we see this asset segment playing out over the next, say, couple of years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 26, 2020 / 12:00PM, TORP.NS - Q2 2021 Torrent Pharmaceuticals Ltd Earnings Call

Question: Nitin Agarwal - IDFC Securities Limited, Research Division - Analyst : And lastly, Sanjay, on the U.S. business, how are we looking at -- how -- rather given where the -- how the -- way the construct with the FDA is, how should we look at incremental growth in the U.S. from the current quarter?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Am I audible now?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Okay. Okay. Perfect. So Sanjay, on business, in your opening comment, did you mention that the growth rate of business is expected to be 3% to 6% in the second half? Or did I hear that incorrectly?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Understood. Okay. But our growth should (technical difficulty) from what we have seen in the second quarter, right, as the activity level in the branded market picks up?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Okay. My second question is on the tender business discontinuation. Was that gradually over the last 2 quarters -- which if you look at the second half sales, that BRL 110 million, BRL 120 million, so what we are doing now, is it fair to assume that, that discontinuation started in the early part of this year rather than in this quarter?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Okay. Sir, are these tenders continue to roll over -- we will see impact for a couple of more quarters. That is a fair assumption?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Okay. Perfect. And my second question is on the India business. I think you mentioned that India, we're back to about 95% activity. Therefore, when you look at, let's say, more second half probably over the next 1 or 2 years, in the last few years, Torrent has been supported by growth, improvement in productivity in MR. How -- what will be the growth drivers for Torrent over the next 2 years to go ahead of the market? Would it still be dependent on pricing?