Natco Pharma Q3 net declines 38% to ₹132 cr. on slump in formulations export revenue 

Generic drugmaker Natco Pharma’s consolidated net profit for the December quarter declined 37.75% to ₹132.4 crore compared to ₹212.7 crore a year earlier as revenue from formulations export slumped.

The lower net profit came on 37.41% decline in revenue from operations at ₹474.8 crore (₹758.6 crore). Sequentially, the net profit was 80% lower and revenue from operations 65%. In the second quarter ended September, the Hyderabad-based company had reported ₹676.5 crore net profit and ₹1,371.1 crore revenue from operations.

Contribution from export formulation business during the third quarter was lower, Natco Pharma said. However, a healthy growth of business in the ensuing quarters was expected, it said in a release on Wednesday.

₹1.50 interim dividend

The company has declared an interim dividend of ₹1.50 per equity share (of ₹2 each). Previously, it had declared interim dividend of ₹3 and ₹1.50 per share for the June and September quarters respectively.

On the segmental revenue split, for the quarter ended December, it said formulations export totalled ₹285.8 crore (₹605.6 crore), while domestic formulations also declined, albeit marginally, to ₹96.1 crore (₹99.4 crore). Revenue from active pharmaceutical ingredients rose to ₹66.6 crore (₹46.3 crore). Other operating and non-operating income increased sharply to ₹187.5 crore (₹30.2 crore). Contribution of crop health sciences business was flattish at ₹15.1 crore (₹14.1 crore).

Total income for the third quarter stood at ₹651.1 crore as against ₹795.6 crore a year ago and ₹1,434.9 crore on a sequential basis.