For
the quarter ending June 2023, consolidated Net sales (including other operating income) of Natco Pharma has increased 28.93% to Rs 1140.5 crore compared to quarter ended June 2022. Sales of Pharmaceutical segment has gone up 23.56% to Rs 1,091.80 crore (accounting for 95.73% of total sales). Sales of Agro Chemical segment has gone up 4,770.00% to Rs 48.70 crore (accounting for 4.27% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 29.28% to Rs 504.20 crore. PBIT of Pharmaceutical segment rose 26.11% to Rs 499.90 crore (accounting for 99.15% of total PBIT). PBIT of Agro Chemical reported profit of Rs 4.30 crore compared to loss of Rs 6.40 crore.
PBIT margin of Pharmaceutical segment rose from 44.86% to 45.79%. PBIT margin of Agro Chemical segment rose from negative 640.00% to 8.83%. Overall PBIT margin rose from 44.09% to 44.21%.
Operating profit margin has jumped from 44.69% to 46.30%, leading to 33.57% rise in operating profit to Rs 528.00 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 11.00% to 12.12%. Purchase of finished goods cost rose from 3.56% to 3.79%. Employee cost decreased from 17.61% to 12.30%. Other expenses rose from 21.99% to 24.78%. Other income fell 42.57% to Rs 19.7 crore. PBIDT rose 27.49% to Rs 547.7 crore.
PBDT rose 27.76% to Rs 543.5 crore. Provision for depreciation rose 9.85% to Rs 43.5 crore.
Profit before tax grew 29.60% to Rs 500.00 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 79.7 crore, compared to Rs 65.4 crore. Effective tax rate was 15.94% compared to 16.95%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 31.18% to Rs 420.30 crore. Promoters’ stake was 49.76% as of 30 June 2023 ,compared to 48.80% as of 30 June 2022 .
Full year results analysis.
Net sales (including other operating income) of Natco Pharma has increased 39.20% to Rs 2707.1 crore. Sales of Pharmaceutical segment has gone up 37.44% to Rs 2,666.20 crore (accounting for 98.49% of total sales). Sales of Agro Chemical segment has gone up 734.69% to Rs 40.90 crore (accounting for 1.51% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 298.54% to Rs 876.40 crore. PBIT of Pharmaceutical segment rose 258.23% to Rs 888.40 crore (accounting for 101.37% of total PBIT). PBIT of Agro Chemical segment rose 57.30% to Rs -12.00 crore (accounting for -1.37% of total PBIT).
PBIT margin of Pharmaceutical segment rose from 12.78% to 33.32%. PBIT margin of Agro Chemical segment rose from negative 573.47% to negative 29.34%. Overall PBIT margin rose from 11.31% to 32.37%.
Operating profit margin has jumped from 13.55% to 34.56%, leading to 255.07% rise in operating profit to Rs 935.60 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 26.47% to 17.41%. Purchase of finished goods cost rose from 2.98% to 6.43%. Employee cost decreased from 22.68% to 17.82%. Other expenses fell from 34.44% to 24.08%. Other income rose 5.66% to Rs 104.6 crore. PBIDT rose 186.95% to Rs 1040.2 crore. Provision for interest fell 18.08% to Rs 14.5 crore. Loan funds declined from Rs 415.50 crore as of 31 March 2022 to Rs 166.70 crore as of 31 March 2023. Inventories declined from Rs 762.00 crore as of 31 March 2022 to Rs 742.90 crore as of 31 March 2023. Sundry debtors were higher at Rs 856.10 crore as of 31 March 2023 compared to Rs 620.60 crore as of 31 March 2022. Cash and bank balance rose to Rs 546.30 crore as of 31 March 2023 from Rs 206.10 crore as of 31 March 2022. Investments rose to Rs 392.30 crore as of 31 March 2023 from Rs 308.10 crore as of 31 March 2022 .
PBDT rose 197.48% to Rs 1025.7 crore. Provision for depreciation rose 14.87% to Rs 163.8 crore. Fixed assets declined from Rs 2,390.60 crore as of 31 March 2022 to Rs 2,303.40 crore as of 31 March 2023. Intangible assets increased from Rs 50.70 crore to Rs 187.80 crore.
Profit before tax grew 326.26% to Rs 861.90 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 146.6 crore, compared to Rs 32.2 crore. Effective tax rate was 17.01% compared to 15.92%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 320.76% to Rs 715.30 crore.
Equity capital stood at Rs 36.50 crore as of 31 March 2023 to Rs 36.50 crore as of 31 March 2022. Per share face Value remained same at Rs 2.00.
Promoters’ stake was 48.84% as of 31 March 2023 ,compared to 48.81% as of 31 March 2022 .
Cash flow from operating activities increased to Rs 849.10 crore for year ended March 2023 from Rs 46.50 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 205.60 crore, compared to Rs 242.60 crore during the year ended March 2022.
Other Highlights
Board Declared
interim dividend of Rs 7 (350 %) per equity share of Rs 2 each for the
financial year 2023-24. Record date is fixed as Tuesday, the 22nd day of August
2023. The payment of said interim dividend will start from 30th August 2023.
In
Q1 FY24, Domestic formulations contributed 11.41% of total revenue, exports
76.21%, API 6.47%, Crop Health Sciences (CHS) 3.85% and others 2.06%.