The article discusses Torrent Pharmaceuticals’ (NSE:TORNTPHARM) ability to manage its debt with ease. The company has a debt-to-EBITDA ratio of 1.1, which is manageable, and its interest coverage ratio is a significant 12.3, indicating that the company has a strong ability to pay its debts. The company’s debt level has been increasing due to the acquisition of HOS, but the benefits from the acquisition, such as increased profitability and revenue, have helped to alleviate the debt burden.
The article notes that Torrent Pharmaceuticals has a strong track record of generating positive cash flows, which has helped to reduce its debt over the years. The company has also been actively managing its Working Capital Adjudication (WCA) process, which has led to a reduction in its debt levels.
The article also provides a brief overview of Torrent Pharmaceuticals’ recent performance, including its revenue and profitability growth, as well as its dividend yield and shareholder return. The company has a strong track record of paying dividends, with a dividend yield of 1.1%, making it an attractive option for income-seeking investors.
In conclusion, the article suggests that Torrent Pharmaceuticals is well-positioned to manage its debt with ease, thanks to its strong cash flows, efficient use of working capital, and proven track record of generating positive returns for shareholders. Its decent interest coverage ratio and manageable debt-to-EBITDA ratio also indicate that the company is capable of servicing its debt comfortably.
However, it’s worth noting that the article is just a brief summary, and it would be a good idea to review the company’s latest financials and reports to get a more comprehensive understanding of its financial health and borrowing capacity.