Torrent Pharma Fined Rs 21 Lakh For Alleged Excess Input Tax Credit
The company will appeal against the order and does not expect any material financial impact from the penalty.
Torrent Pharmaceuticals Ltd. has been penalised Rs 20.96 lakh by the Joint Commissioner of State Tax, Corporate Circle, Lucknow, under Section 73 of the Goods and Services Tax Act.
The penalty was imposed last Friday for alleged excess input-tax-credit availment and discrepancies between business-to-business supply records and the sale/purchase register updated on the government portal for the financial year 2020–21.
The company will appeal against the order and does not expect any material financial impact from the penalty, according to an exchange filing on Monday.
Torrent Pharma reported a 52% year-on-year increase in its consolidated net profit to Rs 443 crore for the October–December quarter of the current fiscal, compared to Rs 292 crore in the year-period. Revenue grew 10% to Rs 2,732 crore, with its domestic business rising 12% year-on-year to Rs 1,415 crore.
Shares of the company closed 2.13% higher at Rs 3,078 per share on the National Stock Exchange, compared to a 0.13% advance in the benchmark Nifty. It has risen 17.71% in the last 12 months.
Twenty out of the 33 analysts tracking the pharma company have a 'buy' rating on the stock, eight recommend 'hold' and five suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 16.9%.
