Torrent Group m-cap doubles to $20 bn in a year
On Friday, two listed companies of the group, Torrent Pharmaceuticals Limited and Torrent Power Limited gained 2.22% and 2.59%, respectively, setting a new milestone for the group's market capitalisation at $20.2 bn at the close of market hours
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Mumbai: Diversified Torrent Group crossed $20 billion (Rs 1.68 lakh crore) in market capitalisation on Friday, nearly doubling the market value on the back of robust growth across businesses spanning from pharma to energy. Torrent Group had an m-cap of $10.8 billion (Rs 90,230 crore) on June 6, 2023. On Friday, two listed companies of the group, Torrent Pharmaceuticals Limited and Torrent Power Limited gained 2.22 per cent and 2.59 per cent, respectively, setting a new milestone for the group's market capitalisation at $20.2 billion at the close of market hours, according to stock exchange data.
Shares of the group's flagship Torrent Pharmaceuticals ended at Rs 2,838 each and its arm Torrent Power closed at Rs 1,492.35 apiece on the NSE. Steady growth in the group's market capitalisation mirrors robust financial performance, sustained growth trajectory and business expansions across verticals. At the core of its growth strategy is the business model driven by acquisitions. The group has already implemented a succession plan where the third generation of the founder late UN Mehta has assumed all prominent driving seats across businesses.
Torrent Pharma has been an early mover into acquisitions when it acquired Elder Pharma in 2013, followed by a spree of acquisitions with latest being Curatio in 2022 to foray into the dermatology segment. The company's large and bold bets are paying off a decade later. Recently, the company inked a pact with Takeda Pharmaceuticals to commercialise its novel gastrointestinal drug Vonoprazan in India under the Torrent brand name of Kabvie for treatment of acid related disorders - Gastroesophageal Reflux Disease (GERD). Torrent Pharma reported a 33 per cent jump in the net profit at Rs 1,656 crore for the fiscal 2023-24 with a revenue growth of over 12 per cent at Rs 10,728 crore.
The company earns about 50 per cent of its revenues from the domestic market. During the past year, Torrent Pharma's India business grew by 10 per cent, while on a MAT (moving annual turnover) basis, the company has outperformed the market across all focus therapies aided by strong new launch performance. Torrent Pharma has 20 brands in the top 500 brands in the Indian Pharmaceuticals Market (IPM), with 17 brands worth more than Rs 100 crore. Ranked 5th in the Indian Pharmaceuticals Market, Torrent is amongst the top 5 in the therapeutics segments of Cardiovascular (CV), Gastrointestinal (GI), Central Nervous System (CNS), Vitamins Minerals Nutritionals (VMN) and Cosmo-Dermatology. The company has a presence in 50 countries.
The power arm of the group, Torrent Power reported a net profit of Rs 1,896 crore on the revenues of Rs 27,183 crore for fiscal 2023-24. The company has built 1,236 MW of renewable capacity with additional 3,041 MW capacities under development. It already has laid down a pipeline of projects in the renewable space. The company is investing in pumped-storage hydro (PSH) and the first project is likely to come up in the next five years. The company has also set ambitious plans for green hydrogen projects. The first pilot project on green hydrogen is being developed in Uttar Pradesh with the blending of green hydrogen with gas in the city gas distribution network in Gorakhpur. On the distribution front, Torrent Power distributes nearly 30 billion units to over 4.13 million customers across 12 cities.
