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NATCO disclosed disappointing Q3 FY25 results today. Therefore, a depreciation of 37% in net profit has been reported. However, net profit on a consolidated basis came in at Rs 132.4 crore, compared to Rs 212.7 crore in the same period last year and falling short of the Rs 247 crore figure originally expected by analysts at Bloomberg.
The pharmaceutical revenues, which recorded an unprecedented downfall of 37.4% over the previous year, brought the greatest disappointment for the company, dropping from Rs 758.6 crore in Q3 FY24 to Rs 474.8 crore in Q3 FY25, compared to Bloomberg’s consensus estimates of Rs 877 crore. EBITDA dropped by 86% to a level of Rs 38.79 crore, marking a drop in margins to the extent of 8.2% as compared to 35.3% of the last year.
While the major reason for this significant bashing is relegated to the contraction in the floor export formulation, the major pie of this revenue is dependent on it. Export formulations sales, working greatly less than half in Q3 figure to Rs 285.8 crore as opposed to Rs 605.6 crore chronicled in the same timeframe last year. Notably, API (Active Pharmaceutical Intermediate) contributed Rs 66.6 crore, which is 43% greater than the said figure of Rs 46.3 crore from the previous year.
Following the results, Natco Pharma shares tanked 19% to Rs 986, with a relentless selling pressure. Although a year back this was an absolute zero-stop attempt at a redemption, over the last twelve months the stock was on an upsurge with gains amounting to 22%.
Long awaited by investors, the board has recently announced a dividend of Rs 1.5 per share for FY25, to be paid out on February 28, 2025. That said, bad news from major export markets and fresh challenges continue to darken their growth expectations.
