Torrent Pharmaceuticals Ltd

Investor Presentation

Q2 FY 2012

This information may contain certain forward-looking statements/ details in

the current scenario, which is extremely dynamic and increasingly fraught

with risks and uncertainties. Actual results, performances, achievements or

sequence of events may be materially different from the views expressed

herein. Investors/shareholders/public are hence cautioned not to place

undue reliance on these statements/ details, and are advised to conduct

their own investigation and analysis of the information contained or referred

to in this section before taking any action with regard to their own specific

objectives. Further, the discussion following herein reflects the perceptions

on major issues as on date and the opinions expressed here are subject to

change without notice. The Company undertakes no obligation to publicly

update or revise any of the opinions or forward-looking statements

expressed in this section, consequent to new information, future events or

otherwise.

Caveat

1. Performance Highlights

2. Financials

3. Business Segments

– India

– International

4. Facilities – Expansion Plan

Contents

Q2 FY12 Highlights

• Revenues at Rs. 6,833 Mn vs. Rs 5,815 Mn

• Revenue growth of 19% on the back of robust growth from International

operations.

• International sales boosted by noticeable performance in US, Brazil and

Heumann (Germany) operations.

• PAT grows by 31% to Rs. 1,000 Mn vs. Rs 762 Mn

• Improvement in international margins and lower taxes contributing to PAT

growth

Financials

Rs. MnSales ProgressionParticulars Q2

11 - 12Q2

10 - 11H1

11 - 12H1

10 - 11India 2371 2227 4831 4461

Gwth % 6% 8%International 3,655 2,752 6,717 5,317

Gwth % 33% 26%Brazil 1210 903 2265 1770Mexico 38 13 65 31Germany (Heumann) 931 724 1756 1416USA 499 313 921 583Europe (excl Heumann) 429 316 762 629Rest of World 387 369 679 615Russia & CIS 161 114 269 274

Contract Manufacturing 545 558 1155 984Gwth % -2% 17%

Other 6 -17 9 10Total Sales 6,578 5,519 12,711 10,773

Gwth % 19% 18%

P&L Rs. Mn

Particulars Q2 11 - 12

Q2 10 - 11

H1 11 - 12

H1 10 - 11

Revenues 6,833 5,815 13,308 11,225 Cogs 2,221 1,832 4,180 3,473

% Revenues 33% 32% 31% 31%SG&A Spend 1,728 1,488 3,268 2,899

% Revenues 25% 26% 25% 26%Employee Cost 1,161 991 2,276 1,913

% Revenues 17% 17% 17% 17%R&D Spend 317 329 647 644

% Revenues 5% 6% 5% 6%EBITDA 1,407 1,175 2,938 2,297

% Revenues 21% 21% 23% 21%PBT 1,219 1,012 2,533 1,989

% Revenues 18% 17% 19% 18%Tax 212 250 499 485

% PBT 17% 25% 20% 24%PAT (after minority Int) 1,000 762 2,025 1,504

% Revenues 15% 13% 15% 13%

Balance Sheet Rs. MnParticulars 31.Mar.11 % 30.Sep.11 % ∆

SOURCE OF FUNDS: Shareholders' Funds 10,224 62% 11,979 65% 1,755 Loan Funds 5,721 35% 5,812 32% 92 Minority Interest 16 0% 24 0% 8 NET DEFERRED TAX LIABILITY 480 3% 526 3% 46

TOTAL 16,440 100% 18,341 100% 1,901

APPLICATION OF FUNDS: Net Fixed Assets 8,541 52% 8,935 49% 393 Long Term Investments 200 1% 200 1% - WORKING CAPITAL:

Inventories 5,048 31% 5,234 29% 185 Sundry Debtors 3,404 21% 4,818 26% 1,414 Other Current Assets 678 4% 760 4% 82 Loans & Advances 1,428 9% 1,579 9% 151 Less: Current Liab. & Prov. 8,907 54% 9,935 54% 1,028

NET CURRENT ASSETS 1,651 10% 2,455 13% 804

Cash, Bank & Current Investments 6,048 37% 6,752 37% 704 TOTAL 16,440 100% 18,341 100% 1,901

Business Segments

India

Highlights & Growth Drivers Rs. Mn

India

• Q2 FY 12 Highlights

• Lower revenue growth on account of relatively low performance in acute therapies

• Lower margins on account of higher manufacturing overheads and higher marketing

spend

• Growth drivers• Consolidate entry into newer geographies and therapeutic areas• Brand building thru increased Specialty Coverage & Creeping Expansion in Customer

Base• New Product Introductions including filling of Portfolio Gaps• Entry into new therapeutic areas

India Q2 11 - 12

Q2 10 - 11

H1 11 - 12

H1 10 - 11

Revenues 2362 2199 4811 4433% Growth 7% 9%

Business Segments

International Operations

International Operations – Expanding ShareFY 11 - Turnover

International Revenues Rs. Mn

Growing share of International – up from 26% to 51%

International Q2 11 - 12

Q2 10 - 11

H1 11 - 12

H1 10 - 11

Revenues 3777 2863 6933 5555% Growth 32% 25%

Rs. MnHighlights & Growth DriversBrazil

• Q2 FY 12 Highlights

• Reai growth of ~ 27% with volumes growing 28%, New Introductions 5%, Price de-growth

6%.

• QTR (Jun - Aug 2011) ~ Torrent growing at 15% vs. Covered Market growth of 25%

• Improved margins on account of higher sales

• Growth Drivers

• Existing Products & Introduction of new products (30-35 new launches by 2014-15)

Brazil Q2 11 - 12

Q2 10 - 11

H1 11 - 12

H1 10 - 11

Revenues 1242 924 2316 1811% Growth 34% 28%

Rs. MnHighlights & Growth DriversMexico

• Q2 FY 12 Highlights

• Actively marketing 5 molecules in CNS

• 1 product lined up for launch in CNS for the year

• Field force of 30 people covering 70% of Mexican market.

• Growth Drivers

• Planning to enter into CV segment from next year

• Portfolio to grow to 30 products in 4 years with field force of 200 people

Mexico Q2 11 - 12

Q2 10 - 11

H1 11 - 12

H1 10 - 11

Revenues 38 13 66 32% Growth 186% 109%

• Q2 FY 12 Highlights

• Launched 2 new molecules in Q2 taking total number of molecules to 17 actively

marketed

• Improved margins on account of higher revenues and lower R&D spend

• 30 ANDA's approved till date (17 actively marketed, 7 under patent)

• Growth Drivers

• 32 ANDA's pending for approval & 8 ANDA's under development

• Break-even likely by 2012-13

Highlights & Growth Drivers Rs. MnUSA

USA Q2 11 - 12

Q2 10 - 11

H1 11 - 12

H1 10 - 11

Revenues 515 328 957 609% Growth 57% 57%

Rs. MnHighlights & Growth Drivers

• Q2 FY 12 Highlights

• Euro sales growth of 18%, with continuous improvement in market share over last 4

quarters

• Improves gross margins on account of new product introduction.

• Growth Drivers

• Heumann successful in winning tenders

• New Products going off patent and Therapy coverage expansion

• Shift of manufacturing base to India to boost competitiveness in bidding

Germany - Heumann

Germany (Heumann)

Q2 11 - 12

Q2 10 - 11

H1 11 - 12

H1 10 - 11

Revenues 938 735 1772 1432% Growth 28% 24%

Rs. MnHighlights & Growth DriversEurope (excl Heumann)

• Q2 FY 12 Highlights

- Euro sales growth of 20%

- Investment spend in UK and Romania affecting margins

• Growth Drivers

- New Product Pipeline – 30 products till 2014-15

- Increasing geographical through direct field force presence in Romania and UK in the

immediate term.

Europe (exc Heumann)

Q2 11 - 12

Q2 10 - 11

H1 11 - 12

H1 10 - 11

Revenues 507 388 890 753% Growth 31% 18%

Rs. MnHighlights & Growth DriversROW

• Q2 FY12 Highlights• Lower growth on account of supply issues expected to be resolved in coming quarters• Adjusted for currency movements top line grew by 5%

• Growth Drivers• Entry into semi-regulated markets like Thailand (Market Size of over USD 2 bio) –

Revenues expected to flow from FY13.• Increased focus on existing territories with direct field force presence viz Philippines, Sri

Lanka, Vietnam & Myanmar• Scale up of operations in regulated markets like Australia & semi-regulated markets like

South Africa.• Minimize development costs by leveraging on R&D costs incurred for developed markets

ROW Q2 11 - 12

Q2 10 - 11

H1 11 - 12

H1 10 - 11

Revenues 408 383 718 653% Growth 7% 10%

Facilities – Expansion Plan

Dahej SEZ

• Nature: Formulation & API Capacity Enhancement

• Project Cost: Rs. 800 crores

• Planned capacities: 50 TPA plus 11,000 million tablets / capsules p.a.

• Timelines for completion:

• Phase I: Project cost of Rs. 500 crores, commissioning in FY 2014-15

• Phase II: Project cost of Rs. 300 crores, commissioning in FY 2016-17

• Justification:

– With growing volumes in US / EU, API + Formulation capacity constraint is anticipated in 2-3

years.

Facilities – Expansion Plan

Thank You