Torrent Pharma Ltd

hi

If u look at q1 results which had a lot of revenues coming from US, the following is the composition of revenues

US 46% 880 cr
India 25% 490 cr
Brazil 7% 134 cr
Eurpoe 12% 230 cr
ROW 5% 90 cr

Now coming to Brazil, how much the currency depreciates is to be monitored and then one has to think about what kind of problem torrent could have. Luckily for the company, this Brazilian thing comes at a time when US and Indian markets are firing on all cylinders for the co. And hence the actual impact shold be negligible. But if this problem continues beyond fy 16 then next year US may not be such a huge contributor to overall revenues and then the Brazil contribution could increase. But for that management has some time to react and take remedial action.

Another interesting aspect for this year is that

if u look at consolidated figures, PBT was 859 crores on which co paid a tax of 410 crores. (this is due to regulatory requirements bcos whatever is shipped (even though it is not recognised as revenues prior to actual sales) entails tax payment.) Management has categorically stated in concall that tax rate will be as per earlier year on an overall yearly basis. So till the company makes PBT of around 2050 for the year, it will need to pay a tax of 410 crores on ball park tax rates of 20% as per last year. Now co has alread paid the 410 crores and hence the incremental nearly 1200 crores of PBT will not attract much by way of tax and hence the figures for next few quarters could look much better than expected.

disc: invested.