Sales of Pharmaceutical segment has gone down 53.40% to Rs 373.80 crore (accounting for 99.10% of total sales).  Sales of Agro Chemical segment has gone up 3,300.00% to Rs 3.40 crore (accounting for 0.90% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has slumped 73.01% to Rs 73.80 crore.  PBIT of Pharmaceutical segment fell 70.38% to Rs 81.10 crore (accounting for 109.89% of total PBIT).  PBIT of Agro Chemical segment rose 1,725.00% to Rs -7.30 crore (accounting for -9.89% of total PBIT).  

PBIT margin of Pharmaceutical segment fell from 34.14% to 21.70%.  PBIT margin of Agro Chemical segment rose from negative 400.00% to negative 214.71%.  Overall PBIT margin fell from 34.08% to 19.57%.  

Operating profit margin has declined from 34.46% to 18.69%, leading to 74.49% decline in operating profit to Rs 70.50 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 10.80% to 27.99%.   Purchase of finished goods cost fell from 13.49% to 3.08%.   Employee cost increased from 15.42% to 26.44%.   Other expenses fell from 25.83% to 25.42%.   

Other income rose 47.86% to Rs 38 crore.  PBIDT fell 64.08% to Rs 108.5 crore.  Provision for interest rose 48.15% to Rs 4 crore.  Loan funds declined from Rs 433.70 crore as of 30 September 2020 to Rs 371.10 crore as of 30 September 2021.  Inventories rose to Rs 914.10 crore as of 30 September 2021 from Rs 671.30 crore as of 30 September 2020.  Sundry debtors were lower at Rs 465.80 crore as of 30 September 2021 compared to Rs 643.10 crore as of 30 September 2020.  Cash and bank balance declined from Rs 463.70 crore as of 30 September 2020 to Rs 164.90 crore as of 30 September 2021.  Investments rose to Rs 392.40 crore as of 30 September 2021 from Rs 301.10 crore as of 30 September 2020 .  

PBDT fell 65.10% to Rs 104.5 crore.  Provision for depreciation rose 20.91% to Rs 34.7 crore.  Fixed assets increased to Rs 2,271.20 crore as of 30 September 2021 from Rs 2,129.20 crore as of 30 September 2020.  Intangible assets increased from Rs 9.50 crore to Rs 11.70 crore.  

Profit before tax down 74.21% to Rs 69.80 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 4.7 crore, compared to Rs 66.8 crore.  Effective tax rate was 6.73% compared to 24.68%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 67.84% to Rs 65.10 crore.  

Equity capital increased from Rs 36.40 crore as of 30 September 2020 to Rs 36.50 crore as of 30 September 2021.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 48.87% as of 30 September 2021 ,compared to 48.91% as of 30 September 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Natco Pharma has declined 42.33% to Rs 787.5 crore.  Sales of Pharmaceutical segment has gone down 42.62% to Rs 783.50 crore (accounting for 99.49% of total sales).  Sales of Agro Chemical segment has gone up 3,900.00% to Rs 4.00 crore (accounting for 0.51% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has slumped 61.67% to Rs 166.80 crore.  PBIT of Pharmaceutical segment fell 59.60% to Rs 176.00 crore (accounting for 105.52% of total PBIT).  PBIT of Agro Chemical segment rose 2,200.00% to Rs -9.20 crore (accounting for -5.52% of total PBIT).  

PBIT margin of Pharmaceutical segment fell from 31.90% to 22.46%.  PBIT margin of Agro Chemical segment rose from negative 400.00% to negative 230.00%.  Overall PBIT margin fell from 31.87% to 21.18%.  

Operating profit margin has declined from 32.77% to 22.90%, leading to 59.71% decline in operating profit to Rs 180.30 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 15.39% to 26.17%.   Purchase of finished goods cost fell from 11.20% to 2.37%.   Employee cost increased from 16.20% to 25.21%.   Other expenses rose from 24.08% to 25.33%.   

Other income rose 23.87% to Rs 55 crore.  PBIDT fell 52.17% to Rs 235.3 crore.  Provision for interest fell 6.25% to Rs 6 crore.  Loan funds declined from Rs 433.70 crore as of 30 September 2020 to Rs 371.10 crore as of 30 September 2021.  Inventories rose to Rs 914.10 crore as of 30 September 2021 from Rs 671.30 crore as of 30 September 2020.  Sundry debtors were lower at Rs 465.80 crore as of 30 September 2021 compared to Rs 643.10 crore as of 30 September 2020.  Cash and bank balance declined from Rs 463.70 crore as of 30 September 2020 to Rs 164.90 crore as of 30 September 2021.  Investments rose to Rs 392.40 crore as of 30 September 2021 from Rs 301.10 crore as of 30 September 2020 .  

PBDT fell 52.77% to Rs 229.3 crore.  Provision for depreciation rose 20.81% to Rs 68.5 crore.  Fixed assets increased to Rs 2,271.20 crore as of 30 September 2021 from Rs 2,129.20 crore as of 30 September 2020.  Intangible assets increased from Rs 9.50 crore to Rs 11.70 crore.  

Profit before tax down 62.50% to Rs 160.80 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 20.7 crore, compared to Rs 102.8 crore.  Effective tax rate was 12.87% compared to 23.97%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 56.92% to Rs 140.10 crore.  

Equity capital increased from Rs 36.40 crore as of 30 September 2020 to Rs 36.50 crore as of 30 September 2021.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 48.87% as of 30 September 2021 ,compared to 48.91% as of 30 September 2020 .  

Cash flow from operating activities has turned negative Rs 49.90 crore for YTD ended September 2021 from positive Rs 225.90 crore for YTD ended September 2020.  Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 117.20 crore, compared to Rs 100.80 crore during the YTD ended September 2020.  

Full year results analysis.

Net sales (including other operating income) of Natco Pharma has increased 7.16% to Rs 2052.1 crore.  Sales of Pharmaceutical segment has gone up 7.05% to Rs 2,050.00 crore (accounting for 99.90% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 0.46% to Rs 592.90 crore.  PBIT of Pharmaceutical segment rose 0.66% to Rs 594.10 crore (accounting for 100.20% of total PBIT).  

PBIT margin of Pharmaceutical segment fell from 30.82% to 28.98%.  Overall PBIT margin fell from 30.82% to 28.89%.  

Operating profit margin has declined from 30.42% to 29.54%, leading to 4.05% rise in operating profit to Rs 606.20 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 16.53% to 17.76%.   Purchase of finished goods cost rose from 6.42% to 8.88%.   Employee cost increased from 18.84% to 19.76%.   Other expenses fell from 28.93% to 24.74%.   

Other income fell 3.54% to Rs 103.6 crore.  PBIDT rose 2.87% to Rs 709.8 crore.  Provision for interest fell 38.14% to Rs 13.3 crore.  Loan funds declined from Rs 315.90 crore as of 31 March 2020 to Rs 267.60 crore as of 31 March 2021.  Inventories rose to Rs 798.20 crore as of 31 March 2021 from Rs 558.00 crore as of 31 March 2020.  Sundry debtors were lower at Rs 412.90 crore as of 31 March 2021 compared to Rs 551.30 crore as of 31 March 2020.  Cash and bank balance rose to Rs 283.50 crore as of 31 March 2021 from Rs 66.00 crore as of 31 March 2020.  Investments rose to Rs 303.70 crore as of 31 March 2021 from Rs 112.30 crore as of 31 March 2020 .  

PBDT rose 4.19% to Rs 696.5 crore.  Provision for depreciation rose 17.13% to Rs 116.9 crore.  Fixed assets increased to Rs 2,237.20 crore as of 31 March 2021 from Rs 2,093.60 crore as of 31 March 2020.  Intangible assets increased from Rs 8.80 crore to Rs 9.40 crore.  

Profit before tax grew 1.92% to Rs 579.60 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 137.2 crore, compared to Rs 110.6 crore.  Effective tax rate was 23.67% compared to 19.45%.

Net profit attributable to owners of the company decreased 4.32% to Rs 440.90 crore.  

Equity capital increased from Rs 36.40 crore as of 31 March 2020 to Rs 36.50 crore as of 31 March 2021.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 48.87% as of 31 March 2021 ,compared to 48.93% as of 31 March 2020 .  

Cash flow from operating activities decreased to Rs 298.80 crore for year ended March 2021 from Rs 417.30 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 254.60 crore, compared to Rs 358.60 crore during the year ended March 2020.  

Other Highlights

The board has Declared second interim dividend of Rs 0.50 (fifty paisa only) (25%) each per equity share of Rs 2 each for the financial year 2021-22.

In FY21, Domestic formulations contributed 19% of total revenue, exports 31%, API 24%, subsidiaries 19% and others 7%.

Company has launched 10 new products during the year.