Torrent Pharmaceuticals Ltd Q2 2025 Earnings Call Transcript

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

Question: Tushar Manudhane - Motilal Oswal Financial Services Ltd - Analyst : Yeah, am I audible?

Question: Tushar Manudhane - Motilal Oswal Financial Services Ltd - Analyst : Thanks for the opportunity. Sir, just on the insulin front, this issue is more of a temporary thing and you think that this will get resolved soon or it might take longer?

Question: Tushar Manudhane - Motilal Oswal Financial Services Ltd - Analyst : Understood. And so, if you could throw some light, let's say in terms of this GLP-1 set of products as far as India markets, how are we preparing let's said to launch in the India market as and when sort of the regulatory approvals comes through. Will the manufacturing per se will be a constraint in terms of having this product available?

Question: Tushar Manudhane - Motilal Oswal Financial Services Ltd - Analyst : But like just a clarification, like unlike say other products as far as domestic formulation market is concerned, outsourcing is not that difficult, but do you think that these products, particularly leaders boards will have the manufacturing concern?

Question: Tushar Manudhane - Motilal Oswal Financial Services Ltd - Analyst : Got it, sir. No, I meant to say as in when we launch, we'll not having a manufacturing facility or maybe outsourcing. Will that be a constraint even if the demand is there. So that was the thought process.

Question: Tushar Manudhane - Motilal Oswal Financial Services Ltd - Analyst : Okay sir. Thank you.

Question: Damayanti Kerai - HSBC Bank PLC - Analyst : Hi, good afternoon and thank you for the opportunity. My first question is on gross margin. So, we continue to see, I guess a positive surprise on gross margin. So if you can comment, what is leading to consistent improvement in gross margins and what kind of further levels are available from here on? And where do you see this margin settling in?

Question: Damayanti Kerai - HSBC Bank PLC - Analyst : So, you think current level can be sustained or like can be further improved?

Question: Damayanti Kerai - HSBC Bank PLC - Analyst : Okay. My second question is on your effort or initiative towards the consumer health business. So if you can share like what kind of incremental initiatives are ongoing and what kind of trend you are incurring to really step up the consumer business in India. 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 25, 2024 / 12:30PM, TORP.NS - Q2 2025 Torrent Pharmaceuticals Ltd Earnings Call

Question: Damayanti Kerai - HSBC Bank PLC - Analyst : Okay. So very broadly, what cost of sales is currently going towards the ANP for the consumer business?

Question: Damayanti Kerai - HSBC Bank PLC - Analyst : Okay. My last question is on the US business, So I guess we continue to see a very gradual step up there. Despite now all the plants -- all the key plants being cleared by the USFDA. So how do you see US sales moving up from here on? And if you can also update in terms of the launches, which you are planning for next two years or so?

Question: Amey Chalke - JM Financial Ltd. - Analyst : Yeah. Thank you for taking my question. Our first question on the India business. So, in India business we have been growing well for the last few years, we have gained market sharing value which we would see the data provided by IQVIA and AIOCD. However, is it possible for us to give some clarity on the prescription market share again in our top 10 to 15 products for last one or two years? How has been the trend there? In some of our key products.

Question: Amey Chalke - JM Financial Ltd. - Analyst : Got it. And the second question I have, is it possible to provide the margin drivers for next three years? So far we have like we have reached around 32% plus now. So going ahead, what with the key drivers from here? Is there any geography where you think the if the ramp up happens, the margins could improve or anything, any margin drivers, you could highlight this.

Question: Amey Chalke - JM Financial Ltd. - Analyst : So the way i understand it is the investment space coming down. So that's why the operating leverage will play out and that's how the 50bps to 100bps margin improvement will happen.

Question: Amey Chalke - JM Financial Ltd. - Analyst : And the third question I have is on the R&D spend. We have been doing 5% of our R&D of 5% of our top line on the R&D. Is it possible to give clarity on what areas we have been spending? Because this has been quite consistent even during the time of when we had issues with the US.

Question: Amey Chalke - JM Financial Ltd. - Analyst : Sure. And in terms of formulation, what all types of products are we putting this spend on like in terms of injectables or anything else which we are trying at this point?

Question: Amey Chalke - JM Financial Ltd. - Analyst : Sure. Thank you so much. I will join the queque.

Question: Bino Pathiparampil - Elara Securities (India) Private Limited - Analyst : Hi, good evening. Could you please explain the insulin issue in a bit detail? What exactly happened and how it will get?

Question: Bino Pathiparampil - Elara Securities (India) Private Limited - Analyst : Oh, so it was just to shut down for a plant upgrade. That's it.

Question: Bino Pathiparampil - Elara Securities (India) Private Limited - Analyst : Got it. Thank you.

Question: Sumit Gupta - Centrum Capital Ltd - Analyst : Hi, good evening. Thank you for the opportunity. Sir, I have three questions first from the domestic -- India side. So now that 300 MRs was added. So, what's the plan ahead? Do you plan to add more towards it? And what kind of MR productivity can we see over the next two to three years?

Question: Sumit Gupta - Centrum Capital Ltd - Analyst : Okay. And the kind of productivity that we can target is? 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 25, 2024 / 12:30PM, TORP.NS - Q2 2025 Torrent Pharmaceuticals Ltd Earnings Call

Question: Sumit Gupta - Centrum Capital Ltd - Analyst : Okay. And the second question on the US sales. So like what is the profitability, the US is not profitable post R&D?

Question: Sumit Gupta - Centrum Capital Ltd - Analyst : Right? Okay. Post R&D, like, what -- buwhen can we expect the profitability to break?

Question: Sumit Gupta - Centrum Capital Ltd - Analyst : Understood. And the last question is on the CAPEX, so how much of CAPEX we plan to incur over the next Two to three years?

Question: Sumit Gupta - Centrum Capital Ltd - Analyst : Okay.

Question: Saion Mukherjee - Nomura Holdings, Inc - Analyst : Alright, thanks. Just one question. The insulin, can you share what's the revenue for the on an annual basis and is it fair to assume there was no revenue this quarter?

Question: Saion Mukherjee - Nomura Holdings, Inc - Analyst : Okay. And just one last question on you had good growth. But if I look at the first half, I think the growth is around 12%-odd. Is that the right thing to look at? But I understand there was some disruption in Q1 and you know, there was still over of sales. We just want to understand the underlying trajectory because you mentioned IQVIA is indicating an 8% growth.

Question: Saion Mukherjee - Nomura Holdings, Inc - Analyst : Okay, Thank you.

Question: Alok Dalal - Jefferies India Private Limited - Analyst : Yes, good evening. Aman, can you provide split of volume price and new products for India?

Question: Alok Dalal - Jefferies India Private Limited - Analyst : Okay. Thank you. And Sanjay, what will be the guidance for Brazil for the full year? You expect to remain in this range only? 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 25, 2024 / 12:30PM, TORP.NS - Q2 2025 Torrent Pharmaceuticals Ltd Earnings Call

Question: Alok Dalal - Jefferies India Private Limited - Analyst : Okay. And, and what is the plan for new launches in Brazil?

Question: Alok Dalal - Jefferies India Private Limited - Analyst : Okay. Thank you very much.

Question: Damayanti Kerai - HSBC Bank PLC - Analyst : Hi, thank you for the opportunity again. Coming back on India. So, I guess we continue to see very muted contribution from the volume expansion, low single digit. So, what is the outlook here should be assumed going ahead also volume contribution will remain muted in a low single digit and majority will be contributed by price and launches. How do you see the volume of moving up in the market, the broader market?

Question: Damayanti Kerai - HSBC Bank PLC - Analyst : Okay. Understood. But what are your thoughts like in the India market? Obviously, we are seeing this low contribution overall for last couple of quarters. So what is attributing mainly for this kind of muted, I guess contribution from the volume? 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 25, 2024 / 12:30PM, TORP.NS - Q2 2025 Torrent Pharmaceuticals Ltd Earnings Call

Question: Damayanti Kerai - HSBC Bank PLC - Analyst : Okay. Thank you.

Question: Rahul Jeewani - IIFL Securities Limited - Analyst : Yeah. Hi sir. Thanks for taking my question. Can you quantify the quantum of Forex -- Forex loss losses which is sitting in other income for this quarter?

Question: Rahul Jeewani - IIFL Securities Limited - Analyst : Sure sir. And sir, on the debt position, I think if I see the H1 numbers, our net debt is largely flat versus FY'24. So, what kind of repayment have you seen in H1?

Question: Rahul Jeewani - IIFL Securities Limited - Analyst : Okay, so yeah, that's it for me. So, thank you.

Question: Rashmi Sancheti Shetty - Dolat Capital Market Pvt. Ltd. - Analyst : Yeah, thanks for the opportunity. Just to follow up on gross debt INR900 crores we have paid in -- repaid in H1. Any more quantum or repayment is expected in H2.

Question: Rashmi Sancheti Shetty - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. And what about FY'26 annual number?

Question: Rashmi Sancheti Shetty - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. And just one on US business, with the that also now coming out and receiving the EIR, how many new launches are planned, at the company level from the facilities as well as your partner products put together.

Question: Rashmi Sancheti Shetty - Dolat Capital Market Pvt. Ltd. - Analyst : And this would be high, single digit launches?

Question: Rashmi Sancheti Shetty - Dolat Capital Market Pvt. Ltd. - Analyst : Understood. And but otherwise this base of, $32 million quarterly and it will be maintained in the subsequent quarters also.

Question: Rashmi Sancheti Shetty - Dolat Capital Market Pvt. Ltd. - Analyst : Okay. Got it, sir. Thank you. That's it from my side.

Question: Anubhav Agarwal - Union Bank of Switzerland - Analyst : Hi guys, just checking am i audible properly?

Question: Anubhav Agarwal - Union Bank of Switzerland - Analyst : Thank you. Just one question for me on the India business. So the expansion of field force by, let's say high single percentage on annual level. What is the primary dominant factor there? For example, are you increasing your doctor coverage here predominantly or this is largely for the new launches of the same divisions? Are you increasing more divisions?

Question: Anubhav Agarwal - Union Bank of Switzerland - Analyst : But on the first point of the doctor coverage, do you think that there's a potential to cover significant more number of doctors that you're covering right now and therefore the field force for you instead of is there a merit, first of all, instead of growing this field force by 7%- 8%versus growing it to 12%-13% or there? About for example, and cover more doctors and you taking more market share from the smaller companies?

Question: Anubhav Agarwal - Union Bank of Switzerland - Analyst : I mean, can you give an give us an example just to understand a little better. For example, when you say non metro, for example, and I'm in Mumbai. So just take Nasik as an example what do you quote? 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 25, 2024 / 12:30PM, TORP.NS - Q2 2025 Torrent Pharmaceuticals Ltd Earnings Call

Question: Anubhav Agarwal - Union Bank of Switzerland - Analyst : Okay. Sure. Thank you.