Torrent Pharmaceuticals
BSE SENSEX
24,338
Bl oomberg
Equi ty Sha res (m)
M.Ca p.(INRb)/(USDb)
52-Week Ra nge (INR)
1, 6, 12 Rel . Per (%)
Avg Va l , (INR m)
Free fl oa t (%)
S&P CNX
7,404
TRP IN
169.2
228.4 / 3.4
1,720/1,033
-2/5/36
230
28.8
4 February 2016
Q3FY16 Results Update | Sector: Healthcare
CMP: INR1,350
TP: INR1,800(+33%)
Buy
Abilify continues to surprise positively; outlook remains strong
Financials & Valuation (INR b)
Y/E Mar
2015 2016E 2017E
Net Sa les
46.5
66.2
62.3
EBITDA
10.2
26.8
16.8
PAT
5.7
10.9
12.1
EPS (INR)
33.4
64.2
71.6
Gr. (%)
4.9
92.4
11.5
BV/Sh (INR)
147.2 229.2 275.7
RoE (%)
25.7
34.1
28.4
RoCE (%)
27.7
50.2
28.7
P/E (x)
40.4
21.0
18.8
P/BV (x)
9.2
5.9
4.9
Estimate change
TP change
Rating change
Torrent reported sales of INR15.4b (up 32% YoY) with EBITDA of INR6.1b (vs
our est of INR5.1b) and PAT of INR4.8b, up 189% YoY. Strong profitability
growth and superior margins of ~40% (vs 21% in 3Q FY15) was primarily driven
by higher contribution from Abilify and cost control initiatives taken in India.
US continue to shine; India to bounce back from 4Q:
The US business for TRP
grew by 226% YoY to INR5.6b, led by Abilify sales and ramp-up of recent
launches including Esemoprazole and Detrol. India biz grew at ~7%YoY to INR
4.5b, mainly on account of stoppage of promotional activities (Bonus sales etc.)
and rationalization of sales force (down by ~300 in 3Q and ~600 YTD). TRP
management expects growth in India to bounce back from 4Q onwards.
Though constant currency growth in Brazil remained strong at ~24% YoY in 3Q,
revenues declined in LATAM market by 24% YoY due to currency volatility.
Strong launch pipeline (8-10 ANDA launches in US in FY17E), ramp-up of recent
key launches including Nexium and Detrol and recovery in domestic market will
help offset impact of lower contribution from Abilify over next two years.
Change in business mix leading to improvement in base business margins:
Strong EBITDA margin improvement (40% vs 21% in 3Q FY15) is primarily
driven by higher than expected Abilify sales in US (est USD45m in 3Q). Apart
from Abilify, base business margins have also improved considerably on the
back of cut back on discounts and sales force rationalization in domestic
markets (productivity improved by >30% YoY). We expect EBITDA margins to
expand 557bp over FY15-18E, led by (a) high-impact US launches, (b) higher
synergies from Elder brand acquisition, (c) ramp-up in LatAm and EU markets
and (d) improved MR productivity in India.
Maintain Outperform:
We remain positive on TRP’s re-rating potential due to
(a) niche portfolio in US (c) improvement in base business margins, (c) healthy
return ratios (from 27.7% ROCE in FY15 to 33.8% in FY18E), and (d) substantial
reduction in debt due to INR48b free cash flows over FY16-18E. Reiterate
Buy
with a target price of INR 1,800 (20x FY18E EPS—in line with the sector).
FY16E
2Q
3Q
4QE
16,910 15,390 14,469
38.9
31.8
25.4
7,140 6,130 4,418
42.2
39.8
30.5
610
610
613
480
420
482
740
510
790
6,790 5,610 4,114
-530
0
0
7,320 5,610 4,114
1,640
780
653
24.2
13.9
15.9
5,680 4,830 3,461
186.9 189.2 166.2
33.6
31.4
23.9
FY15
46,530
11.2
10,202
21.9
1,907
1,752
2,856
9,398
0
9,398
1,888
20.1
7,510
49.5
16.1
FY16E
66,223
42.3
26,763
40.4
2,423
1,962
2,710
25,089
0
25,089
7,173
28.6
17,916
138.6
27.1
Est.
3QE
15,895
36.1
5,091
32.0
610
450
650
4,681
0
4,681
1,170
25.0
3,511
110.2
22.1
Var.
vs Est
-3.2%
20.4%
Quarterly Performance (Consolidated) (INR Million)
Y/E March
1Q
Net Revenues
11,140
YoY Cha nge (%)
14.6
EBITDA
3,450
Ma rgi ns (%)
31.0
Depreci a ti on
210
Interes t
240
Other Income
490
PBT before EO Expen 3,490
Extra -Ord Expens e
0
PBT after EO Expens 3,490
Ta x
930
Ra te (%)
26.6
Reported PAT
2,560
YoY Cha nge (%)
71.8
Ma rgi ns (%)
23.0
FY15
2Q
3Q
4Q
12,170 11,680 11,540
25.2
15.1
-5.8
2,730 2,400 1,620
22.4
20.5
14.0
560
540
600
540
500
470
720
650 1,000
2,350 2,010 1,550
0
0
0
2,350 2,010 1,550
370
340
250
15.7
16.9
16.1
1,980 1,670 1,300
75.2
26.1
20.2
16.3
14.3
11.3
1Q
19,470
74.8
9,090
46.7
590
580
670
8,590
0
8,590
4,100
47.7
4,490
75.4
23.1
19.8%
37.6%
Kumar Saurabh
(Kumar.Saurabh@MotilalOswal.com); +91 22 3982 5584
Amey Chalke
(amey.chalke@motilaloswal.com); +91 22 39825423
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Torrent Pharmaceuticals
Abilify led to superior business performance for 3
rd
straight qtr
3Q sales increased 226%YoY to INR5.6b, primarily due to higher than expected sales
in gAbilify in the US. Excluding US, all other segments either reported muted growth
or negative growth in 3Q.
US (36% of sales):
US business increased 226% YoY to INR5.6b, led by gAbilify
launch in the US. Currently, there are only seven players in the market. TRP has
also launched gNexium and gDetrol LA in the US market. Management has
indicated that they will target 15% market share in most of the US launches
ahead.
Till date, TRP has received 57 ANDA approvals in the US while 16 filings are still
pending. TRP expects to launch 8-10 products each year over FY17-18E. With
interesting recent launches like gNexium, gDetrol, gExforge and gAbilify, we
expect growth momentum in US to continue for next few quarters.
The company will also be filing 3-4 ANDAs from Zyg pharma over next year.
Currently, it is a CRAMs business and expects to start contributing meaningfully
in the US business from FY19-20 onwards.
Exhibit 1: US revenues (Quarterly)
US base sales (USD m)
One-offs (USD m)
111
37
17
17
20
19
7
17
28
75
46
21
24
3
25
4
25
5
31
28
35
38
Source: Company, MOSL
India (29% of sales):
India business remained muted with 7%YoY growth due to
discontinuance of bonuses in Indian market. Elder brands – Shelcal and Chymoral
are still outperforming overall Indian market. TRP has taken price increase in elder
brands in Nov’15 and benefits are expected to reflect from 4Q. The company has
launched two biosimilars in Indian market over last two quarters and likely to launch
one more bio similar in 1HFY17.
Exhibit 2: India Revenues (Quarterly)
India sales (INR b)
49
17
3
YoY growth (%)
41
54.7
39.1
10
2
12
3
10
3
15
3
13
-0.2
4
4
4
4
5
4
6.2
4
Source: Company, MOSL
4 Februa ry 2016
2

Torrent Pharmaceuticals
Brazil (8% of sales):
Brazil business declined 24%YoY to INR1.2b, affected by lower
hospital sales, channel inventory and currency depreciation. The company has taken
several steps in Latin business to improve profitability and improve MR productivity.
As per secondary sales, TRP, Brazil business grew 24%YoY in constant currency v/s
covered market growth of 20%.
Europe (13% of sales)
: Europe reported 14% YoY decline in sales, affected by
currency and capacity constraints. Going ahead, TRP expects to focus on Germany
(ranked 6
th
in generics) and UK market and likely to see 13-14% growth over next
few years.
Exhibit 3: Europe sales trend
Europe (INR b)
59.0
19.0
2.5
27.0
(8.5) (12.7) (2.8)
(19.1)
2.3
2.2
2.4
1.9
(2.1)
1.9
(14.1)
2.0
1
1
2
2
1
YoY growth (%)
26
12
1
-4
Exhibit 4: Brazil sales trend
Brazil (INR b)
28
5
10
-7
1
-18
1
1
-24
YoY growth (%)
2.5
2.5
Source: Company, MOSL
Source: Company, MOSL
Margins at 40%; but likely to normalize at 26-27% going ahead
EBIDTA increased 155% YoY to INR 6.1b, with margins improving to 40% in 3Q. Gross
margins stood at 75%, 760bp higher than 3QFY16, due to one off sales of gAbilify in
the US (with superior gross margins- >90%).
Over FY15-18E, we expect Torrent’s EBITDA margins to scale up from 21.9% to
27.5% led by (a) Improved MR productivity in domestic business (management is
targeting improvement from INR 5m per person annually to INR 9m per person
annually, (b) scale-up in US business backed by high value launches and (c) higher
operating leverage from emerging markets.
Other highlights
Dahej plant has successfully completed the US FDA inspection and TRP is
awaiting for EIR from US FDA. However, it has already started receiving product
approvals for Dahej facility and likely to start shipping ten products in near
future. Dahej would support both Germany and US market over medium term.
Indrard facility was also inspected in Mar’15 and also received EIR for same.
Regular repayment has led to reduced interest cost in 3Q. The company expects
interest cost to continue to decrease going ahead.
R&D expense for last nine months stood at 4% of sales.
4 Februa ry 2016
3

Torrent Pharmaceuticals
Exhibit 5: EBITDA margins jumped to 40%
EBITDA (INR b)
EBITDA margin (%)
46.7 42.2
39.8
25.3
21.4
28.6 31.0
18.4 21.2
1.8
2.2
3.5
3.5
Exhibit 6: PAT growth trends
PAT (INR m)
112.6
105.0
46.3
17.4 17.9
1.1
1.3
2.4
2.6
2.0
YoY growth (%)
186.9189.2
22.4 20.5
71.8 75.2
75.4
26.1
(46.7)
1.7
1.3
4.5
5.7
4.8
14.0 9.1
1.6
7.1
6.1
1.2
1.5
2.2
2.1
2.7
2.4
Source: Company, MOSL
Source: Company, MOSL
4 Februa ry 2016
4

Torrent Pharmaceuticals
Operating metrics
Exhibit 7: Key operating metrics
4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16
Revenue Mix (%)
USA
India
Europe
La tAm
RoW
CRAMs
Revenue Gr. (%)
USA
India
Europe
La tAm
RoW
CRAMs
As % of sales
Ra w ma terial
Sta ff cost
Other expenses
Ta x Ra te
Margins (%)
Gross Margins
EBITDA Ma rgins
EBIT Ma rgi ns
PAT ma rgi ns
69.7
25.3
22.7
13.7
66.3
21.4
19.2
15.3
67.8
18.4
16.2
11.6
67.9
21.2
19.1
13.0
73.5
28.6
26.7
19.9
72.4
31.0
29.1
23.0
68.3
22.4
17.8
16.3
67.8
20.5
15.9
14.3
68.2
14.0
8.8
11.3
78.3
46.7
43.7
23.1
77.3
42.2
38.6
33.6
75.4
39.8
35.9
31.4
30.3
20.4
30.4
24.5
33.7
19.0
31.9
20.3
32.2
19.4
33.1
25.7
32.1
18.1
30.6
16.0
26.5
17.2
28.7
23.0
27.6
16.8
26.0
26.6
31.7
18.6
28.2
15.7
32.2
17.2
30.9
16.9
31.8
20.7
34.9
16.1
21.7
10.9
21.3
47.7
22.7
12.7
23.6
24.2
24.6
13.6
23.0
13.9
10.6
25.0
24.2
15.3
9.4
14.6
22.7
46.0
9.8
59.5
6.3
21.7
17.5
11.6
32.1
20.1
13.7
8.7
12.5
22.9
43.2
12.3
49.0
(1.8)
20.6
4.9
11.8
30.6
24.2
12.9
10.0
10.5
25.1
24.5
9.6
54.2
7.7
41.0
50.8
14.6
29.3
24.4
14.6
9.4
7.8
28.6
60.9
14.9
59.0
26.5
21.8
(28.0)
32.6
20.9
20.5
10.4
8.4
7.2
50.4
334.8
17.4
19.0
(3.8)
25.6
(14.9)
24.1
31.7
22.3
13.4
6.0
2.5
20.9
137.6
13.1
27.0
12.0
(21.2)
(58.2)
13.7
36.3
15.6
13.1
7.8
13.4
28.7
45.2
48.8
(19.1)
28.0
(2.1)
63.0
14.6
36.0
19.4
13.4
9.1
5.7
16.8
15.5
41.4
(8.5)
5.4
11.6
15.0
19.5
34.3
19.0
12.2
8.6
6.4
(6.1)
(43.8)
54.7
(12.7)
10.2
(3.9)
(10.0)
45.6
25.2
12.4
7.1
3.9
5.7
75.8
230.7
39.1
(2.8)
(7.4)
13.4
296.4
42.1
26.1
11.0
7.7
4.7
8.3
38.5
326.3
(0.2)
(2.1)
(18.1)
(15.8)
(13.5)
36.2
29.0
12.7
7.7
4.9
9.5
30.9
226.0
6.2
(14.1)
(24.4)
(28.3)
135.1
Source: Company; MOSL
4 Februa ry 2016
5

Torrent Pharmaceuticals
Valuation and view
Strong traction in US business (including one-off) as well as expectations of higher
synergy benefits from Elder’s domestic portfolio acquisition has aided re-rating for
TRP over the last few months. We expect core earnings (excluding one-offs)
trajectory to remain strong (forecast 39% CAGR over FY15-18E) as we think margin
upside in domestic portfolio is still not fully reflected. We expect the stock trade
much above its historic P/E band due to higher revenue visibility and deleveraging
prospects.
Our TP of INR 1,800 implies 33% upside from current levels. Our TP discounts TRP’s
base business at 20x FY17E P/E, in line with current sector average multiple. This is
at the higher end of its historical average and in line with current multiples.
Sustenance of high earnings growth and de-leveraging of Balance Sheet justify
upward shift of its average P/E band upwards.
Key catalysts to drive stock’s performance over the medium term are:
Improvement in EBITDA margin, mainly on stronger contribution from Elder
brands
Execution in key US launches including gNexium, gDetrol LA
Improved free cash generation, driving Balance Sheet deleveraging
Risks to our investment thesis
Regulatory delays could affect timely launch of key US launches.
Increased span of drug price control could hurt domestic business (34% of total
sales).
Unstable currency and macroeconomic outlook for key emerging markets like
Brazil/Russia could dampen growth prospects.
Exhibit 8: Historical PE trend
30
23
16
9
2
13.3
3.9
13.1
PE (x)
Median(x)
Peak(x)
Min(x)
Avg(x)
23.7
19.1
Exhibit 9: PE relative to sensex
100
50
0
-50
-100
Torrent Pharma PE Relative to Sensex PE (%)
LPA (%)
22.4
-21.0
Source: Company, MOSL
Source: Company, MOSL
4 Februa ry 2016
6

Torrent Pharmaceuticals
Story in charts
Exhibit 10: Formulation led sales growth
Formulations (INR b)
CRAMS (INR b)
8
15.5
15.5
8.5
44
61
56
66
7
FY10
8
FY11
9
FY12
15.0
20.0
20.0
Exhibit 11: Domestic sales growth led by Elder acqn. in FY15
Revenues (INR b)
Growth (%)
38.5
5
7
2
16
FY10
2
19
FY11
3
24
FY12
3
28
FY13
3
38
FY14
2
12.7
10
FY13
13.5
12
FY14
16
19
22
27
FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 12: Base sales to grow at ~25-30% over FY15-18E
US base sales (USD m)
One-offs (USD m)
Exhibit 13: Latam - Gradual recovery ahead
Latam revenues (INR b)
32.1
Growth (%)
268
17.4
19.9
5
5.2
6.4
13.5
18.8
18.4
44
19
FY10
25
FY11
45
FY12
65
FY13
84
FY14
32
105
135
222
250
3
FY10
4
FY11
5
FY12
FY13
5
FY14
6
-16.5
5
6
7
FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 14: Europe business to grow at 9% over FY15-18E
Europe (INR b)
43.1
21.1
20.7
19.9
Growth (%)
Exhibit 15: Healthy return ratios
RoCE (%)
RoE (%)
50.2
36.2
13.3
13.6
-0.6
-12.8
8
29.3
29.2
24.4
29.7
28.8
36.0
33.5
32.4
34.9
25.7
34.1
27.7
28.4
28.7
29.6
32.1
4
3.5
4
5
FY12
7
FY13
9
FY14
9
9
10
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY10
FY11
FY15 FY16E FY17E FY18E
Source: Company, MOSL
4 Februa ry 2016
7

Torrent Pharmaceuticals
Exhibit 16: EBITDA growth (%)
EBITDA (INR m)
EBITDA Margins (%)
40.4
Exhibit 17: Gross margin to improve over FY16-18E
Gross Margin (%)
70.0
68.3
68.0
71.2
70.3
EBITDA Margin (%)
69.6
76.0
40.4
16,791
20,155
21.5
17.6
19.4
21.6
22.7
21.9
27.0
27.5
71.2
72.0
21.5
17.6
19.4
21.6
22.7
21.9
26,763
27.0
27.5
9,514 10,202
4,087 3,878 5,218 6,930
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
Source: Company, MOSL
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
Source: Company, MOSL
Exhibit 18: ANDA filed v/s pending
ANDA filed
64
ANDA pending
67
70
70
Exhibit 19: Core EPS to grow at 43% CAGR (FY15-18E)
Core EPS (INR/ share)
One off
53
7
32
11
33
0
58
45
32
21
29
32
0
72
27
24
21
20
16
1
16
0
19
-3
28
-2
64
90
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E FY18E
Source: Company, MOSL
Source: Company, MOSL
4 Februa ry 2016
8

Torrent Pharmaceuticals
Financials and Valuations
Income St atement
Y/E Mar
Net Sales
Cha nge (%)
EBITDA
EBITDA Ma rgin (%)
Depreciation
EBIT
Interest
Other Income
Extra ordi nary i tems
PBT
Ta x
Ta x Ra te (%)
Mi n. Int. & As soc. Share
Reported PAT
Adjusted PAT
Cha nge (%)
2011
21,978
15.4
3,878
17.6
626
3,252
391
347
168
3,376
736
21.8
0
2,640
2,702
0.8
2011
423
9,801
10,224
5,720
480
16,440
9,643
3,287
6,355
1,799
1,460
15,742
5,048
3,404
4,788
2,502
8,916
7,490
1,427
6,826
16,440
2012
26,961
22.7
5,218
19.4
817
4,400
395
445
-863
3,588
730
20.3
23
2,835
3,287
21.7
2012
423
11,515
11,938
5,786
514
18,274
11,990
4,022
7,968
1,188
1,240
20,081
5,315
5,228
6,743
2,795
12,202
10,395
1,807
7,878
18,274
2013
32,120
19.1
6,930
21.6
830
6,100
340
430
-370
5,820
1,470
25.3
20
4,330
4,705
43.1
2013
423
13,796
14,219
7,030
257
21,510
12,785
4,587
8,198
2,853
605
25,872
9,239
6,878
6,270
3,485
16,017
12,297
3,720
9,855
21,510
2014
41,840
30.3
9,514
22.7
870
8,644
586
381
0
8,439
1,801
21.3
0
6,638
5,385
14.4
2014
846
18,178
19,024
11,418
-182
30,264
14,200
5,447
8,753
5,341
1,857
34,091
10,061
10,994
7,694
5,342
19,777
16,239
3,538
14,314
30,265
2015
46,530
11.2
10,202
21.9
1,907
8,295
1,752
2,856
0
9,398
1,888
20.1
0
7,510
5,650
4.9
2015
846
24,059
24,906
25,040
1,047
50,997
35,429
7,103
28,327
6,783
2,977
40,183
10,672
15,945
5,674
7,892
27,273
22,890
4,383
12,910
50,996
2016E
66,223
42.3
26,763
40.4
2,423
24,340
1,962
2,710
0
25,089
5,252
20.9
0
19,837
10,872
92.4
2016E
846
37,940
38,786
19,040
1,688
59,519
37,521
9,525
27,995
6,783
2,977
45,562
11,987
15,231
9,663
8,682
23,799
15,447
8,352
21,764
59,519
2017E
62,306
-5.9
16,791
27.0
2,470
14,321
1,534
2,850
0
15,638
3,518
22.5
0
12,119
12,119
11.5
2017E
846
45,805
46,651
15,040
1,688
63,384
40,521
11,996
28,525
6,783
2,977
50,018
13,533
14,330
12,605
9,550
24,918
17,436
7,482
25,100
63,384
(INR Million)
2018E
73,290
17.6
20,155
27.5
2,583
17,572
677
3,200
0
20,095
4,843
24.1
0
15,252
15,252
25.9
Balance Sheet
Y/E Mar
Sha re Ca pi ta l
Res erves
Net Worth
Debt
Deferred Ta x
Total Capital Employed
Gros s Fi xed As s ets
Les s : Acc Depreci a ti on
Net Fixed Assets
Ca pi ta l WIP
Inves tments
Current Assets
Inventory
Debtors
Ca s h & Ba nk
Loa ns & Adv, Others
Curr Liabs & Provns
Curr. Li a bi l i ti es
Provi s i ons
Net Current Assets
Total Assets
(INR Million)
2018E
846
55,684
56,530
11,040
1,688
69,263
43,521
14,579
28,942
6,783
2,977
59,201
15,477
16,857
16,363
10,505
28,640
19,936
8,704
30,562
69,263
4 Februa ry 2016
9

Torrent Pharmaceuticals
Financials and valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Ca s h EPS
Book Va lue
DPS
Pa yout (i ncl. Div. Ta x.)
Valuation(x)
P/E
Ca s h P/E
Pri ce / Book Value
EV/Sa les
EV/EBITDA
Di vi dend Yi eld (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios (%)
As s et Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Net Debt/Equity (x)
2011
16.0
19.3
60.4
8.0
29.8
2012
19.4
21.6
70.5
8.5
29.2
2013
27.8
30.5
84.0
23.0
52.3
2014
31.8
44.4
112.4
10.0
29.8
42.4
30.4
12.0
5.5
24.4
0.7
29.2
24.4
29.7
28.8
36.0
33.5
32.4
34.9
2015
33.4
55.7
147.2
11.3
29.7
40.4
24.2
9.2
5.3
24.3
0.8
25.7
27.7
2016E
64.2
131.5
229.2
25.0
25.0
21.0
10.3
5.9
3.6
8.9
1.9
34.1
50.2
2017E
71.6
86.2
275.7
21.5
35.1
18.8
15.6
4.9
3.7
13.7
1.6
28.4
28.7
2018E
90.0
105.4
334.1
27.0
35.0
15.0
12.8
4.0
3.0
11.1
2.0
29.6
32.1
1.4
55
84
0.1
2011
3,878
347
190
-755
168
3,828
-2,214
1,614
-48
0
-2,262
0
512
-391
-782
-661
905
3,883
4,788
1.6
71
72
-0.1
2012
5,218
445
902
-696
-863
5,006
-1,736
3,270
220
0
-1,516
0
85
-395
-1,226
-1,535
1,955
4,788
6,743
1.6
78
105
0.1
2013
6,930
430
-2,449
-1,728
-370
2,813
-2,460
353
636
0
-1,825
0
1,212
-340
-2,334
-1,462
-473
6,743
6,270
1.6
96
88
0.2
2014
9,514
381
-3,034
-2,239
0
4,622
-3,904
718
-1,252
0
-5,156
423
4,388
-586
-2,266
1,959
1,425
6,270
7,694
1.1
125
84
0.8
2015
10,202
2,856
-617
-660
0
11,781
-22,923
-11,142
-1,120
0
-24,043
599
13,623
-1,752
-2,227
10,242
-2,020
7,694
5,674
1.2
84
66
0.2
2016E
26,763
2,710
-4,865
-4,610
0
19,998
-2,091
17,907
0
0
-2,091
-1,007
-6,000
-1,962
-4,950
-13,918
3,988
5,674
9,662
1.0
84
79
0.1
2017E
16,791
2,850
-394
-3,518
0
15,729
-3,000
12,729
0
0
-3,000
0
-4,000
-1,534
-4,254
-9,787
2,942
9,663
12,605
1.1
84
77
-0.1
Cash Flow Statement
Y/E Mar
Adjus ted EBITDA
Non ca s h opr. exp (i nc)
(Inc)/Dec i n Wkg. Ca p.
Ta x Pa i d
Other opera ti ng a cti vi ti es
CF from Op. Activity
(Inc)/Dec i n FA & CWIP
Free cash flows
(Pur)/Sa l e of Invt
Others
CF from Inv. Activity
Inc/(Dec) i n Net Worth
Inc / (Dec) i n Debt
Interes t Pa i d
Di vd Pa i d (i ncl Ta x) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Openi ng Ba l a nce
Closing Balance
(INR Million)
2018E
20,155
3,200
-1,704
-4,843
0
16,808
-3,000
13,808
0
0
-3,000
-30
-4,000
-677
-5,343
-10,050
3,758
12,605
16,363
4 Februa ry 2016
10

Torrent Pharmaceuticals
Corporate profile
Company description
Torrent Pharma is one of the second tier Pharma
companies that is actively targeting the regulated
generics and semi-regulated markets. The company
has strong presence in domestic market with focus
and leadership in CVS and CNS segments. Recent
acquisition of Elder’s brand in India strengthens its
positioning further. The company has large presence
in some of the key global markets like Brazil and
Germany while it is expanding its footprint in key
markets like US, Europe (excl. Germany) and RoW.
Exhibit 2: Shareholding pattern (%)
Promoter
DII
FII
Others
Sep-15
71.3
6.0
12.4
10.3
Jun-15
71.3
6.7
12.4
9.7
Sep-14
71.5
6.5
12.8
9.1
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 3: Top holders
Holder Name
La vender Inves tments Ltd
Fra nkl i n Templ eton Inves tment Funds
HDFC Trus tee Compa ny Ltd-HDFC Mi d Ca p
Opportuni ti es Fund
NA
NA
% Holding
1.8
1.5
1.0
0.0
0.0
Source: Ca pitaline
Note: FII Includes depository receipts
Source: Ca pital i ne
Exhibit 4: Top management
Name
Sudhi r Mehta
Sa mi r Mehta
Ma hes h Agra wa l
Designation
Cha i rma n
Executi ve Vi ce Cha i rma n
Compa ny Secreta ry
Exhibit 5: Directors
Name
Ha i greve Kha i ta n
Pra deep Bha rga va
Cha i ta nya Dutt
Name
Ma rka nd Bha tt
Sha i l es h Ha ri bha kti
Renu Cha l l u
Source: Ca pi ta l i ne
Exhibit 6: Auditors
Name
Del l oi te Ha s ki ns & Sel l s
Ki ri t Mehta & Co
Type
Sta tutory
Cos t Audi tor
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY16
FY17
FY18
MOSL
forecast
64.2
71.6
90.0
Consensus
forecast
94.2
75.2
83.4
Variation
(%)
-31.8
-4.7
8.0
Source: Bl oomberg
Source: Ca pitaline
4 Februa ry 2016
11

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Torrent Pharmaceuticals
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