For
the quarter ending June 2022, consolidated net sales (including other operating income) of Natco Pharma has increased 115.60% to Rs 884.6 crore compared to quarter ended june 2021. Sales of Pharmaceutical segment has gone up 115.67% to Rs 883.60 crore (accounting for 99.89% of total sales). Sales of Agro Chemical segment has gone up 66.67% to Rs 1.00 crore (accounting for 0.11% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 319.35% to Rs 390.00 crore. PBIT of Pharmaceutical segment rose 317.70% to Rs 396.40 crore (accounting for 101.64% of total PBIT). PBIT of Agro Chemical segment fell 236.84% to Rs -6.40 crore (accounting for -1.64% of total PBIT).
PBIT margin of Pharmaceutical segment rose from 23.16% to 44.86%. PBIT margin of Agro Chemical segment fell from negative 316.67% to negative 640.00%. Overall PBIT margin rose from 22.67% to 44.09%.
Operating profit margin has jumped from 26.76% to 44.69%, leading to 260.02% rise in operating profit to Rs 395.30 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 24.49% to 11.00%. Purchase of finished goods cost rose from 1.72% to 3.56%. Employee cost decreased from 24.09% to 17.61%. Other expenses fell from 25.25% to 21.99%. Other income rose 101.76% to Rs 34.3 crore. PBIDT rose 238.80% to Rs 429.6 crore. Provision for interest rose 110% to Rs 4.2 crore.
PBDT stood at Rs 425.40 crore compared to loss of Rs 11.5 crore. Provision for depreciation rose 17.16% to Rs 39.6 crore.
Profit before tax grew 323.96% to Rs 385.80 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 65.4 crore, compared to Rs 16 crore. Effective tax rate was 16.95% compared to 17.58%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 327.20% to Rs 320.40 crore. Promoters’ stake was 48.80% as of 30 June 2022 ,compared to 48.87% as of 30 June 2021 .
Full year results analysis.
Net sales (including other operating income) of Natco Pharma has declined 5.23% to Rs 1944.8 crore. Sales of Pharmaceutical segment has gone down 5.37% to Rs 1,939.90 crore (accounting for 99.75% of total sales). Sales of Agro Chemical segment has gone up 133.33% to Rs 4.90 crore (accounting for 0.25% of total sales). Profit before interest, tax and other unallocable items (PBIT) has slumped 62.91% to Rs 219.90 crore. PBIT of Pharmaceutical segment fell 58.26% to Rs 248.00 crore (accounting for 112.78% of total PBIT). PBIT of Agro Chemical segment fell 2,241.67% to Rs -28.10 crore (accounting for -12.78% of total PBIT).
PBIT margin of Pharmaceutical segment fell from 28.98% to 12.78%. PBIT margin of Agro Chemical segment fell from negative 57.14% to negative 573.47%. Overall PBIT margin fell from 28.89% to 11.31%.
Operating profit margin has declined from 29.54% to 13.55%, leading to 56.53% decline in operating profit to Rs 263.50 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 17.76% to 26.47%. Purchase of finished goods cost fell from 8.88% to 2.98%. Employee cost increased from 19.76% to 22.68%. Other expenses rose from 24.74% to 34.44%. Other income fell 4.44% to Rs 99 crore. PBIDT fell 48.93% to Rs 362.5 crore. Provision for interest rose 33.08% to Rs 17.7 crore. Loan funds rose to Rs 415.50 crore as of 31 March 2022 from Rs 267.60 crore as of 31 March 2021. Inventories declined from Rs 798.20 crore as of 31 March 2021 to Rs 762.00 crore as of 31 March 2022. Sundry debtors were higher at Rs 620.60 crore as of 31 March 2022 compared to Rs 412.90 crore as of 31 March 2021. Cash and bank balance declined from Rs 283.50 crore as of 31 March 2021 to Rs 206.10 crore as of 31 March 2022. Investments rose to Rs 308.10 crore as of 31 March 2022 from Rs 303.70 crore as of 31 March 2021 .
PBDT fell 50.50% to Rs 344.8 crore. Provision for depreciation rose 21.98% to Rs 142.6 crore. Fixed assets increased to Rs 2,308.40 crore as of 31 March 2022 from Rs 2,237.20 crore as of 31 March 2021. Intangible assets increased from Rs 9.40 crore to Rs 132.90 crore.
Profit before tax down 65.11% to Rs 202.20 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 32.2 crore, compared to Rs 137.2 crore. Effective tax rate was 15.92% compared to 23.67%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 61.44% to Rs 170.00 crore.
Equity capital stood at Rs 36.50 crore as of 31 March 2022 to Rs 36.50 crore as of 31 March 2021. Per share face Value remained same at Rs 2.00.
Promoters’ stake was 48.81% as of 31 March 2022 ,compared to 48.87% as of 31 March 2021 .
Cash flow from operating activities decreased to Rs 46.50 crore for year ended March 2022 from Rs 298.80 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 242.60 crore, compared to Rs 254.60 crore during the year ended March 2021.
Other Highlights
In
Q1 FY23, Domestic formulations contributed 9.66% of total revenue, exports
80.19%, API 5.52%, Crop Health Sciences (CHS) 0.10% and others 4.53%.
The
Board of Directors has declared an interim dividend of Rs 3.5 per equity share
of Rs 2 each, during the First Quarter of FY2022-23. The payment of said
interim dividend was made on 30th August 2022.