For
the quarter ending sept 2022, consolidated net sales (including other operating income) of Natco Pharma has increased 14.55% to Rs 432.1 crore compared to quarter ended sept 2021. Sales of Pharmaceutical segment has gone up 14.79% to Rs 429.10 crore (accounting for 99.31% of total sales). Sales of Agro Chemical segment has gone down 11.76% to Rs 3.00 crore (accounting for 0.69% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 0.41% to Rs 74.10 crore. PBIT of Pharmaceutical segment fell 7.03% to Rs 75.40 crore (accounting for 101.75% of total PBIT). PBIT of Agro Chemical segment rose 82.19% to Rs -1.30 crore (accounting for -1.75% of total PBIT).
PBIT margin of Pharmaceutical segment fell from 21.70% to 17.57%. PBIT margin of Agro Chemical segment rose from negative 214.71% to negative 43.33%. Overall PBIT margin fell from 19.57% to 17.15%.
Operating profit margin has jumped from 18.69% to 22.06%, leading to 35.18% rise in operating profit to Rs 95.30 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 27.99% to 21.36%. Purchase of finished goods cost rose from 3.08% to 9.85%. Employee cost decreased from 26.44% to 23.26%. Other expenses rose from 25.42% to 25.45%. Other income fell 46.05% to Rs 20.5 crore. PBIDT rose 6.73% to Rs 115.8 crore. Provision for interest fell 5% to Rs 3.8 crore. Loan funds declined from Rs 371.10 crore as of 30 September 2021 to Rs 85.60 crore as of 30 September 2022. Inventories declined from Rs 914.10 crore as of 30 September 2021 to Rs 749.30 crore as of 30 September 2022. Sundry debtors were lower at Rs 371.10 crore as of 30 September 2022 compared to Rs 465.80 crore as of 30 September 2021. Cash and bank balance rose to Rs 433.60 crore as of 30 September 2022 from Rs 164.90 crore as of 30 September 2021. Investments declined from Rs 392.40 crore as of 30 September 2021 to Rs 377.50 crore as of 30 September 2022.
PBDT rose 7.18% to Rs 112 crore. Provision for depreciation rose 20.17% to Rs 41.7 crore. Fixed assets increased to Rs 2,473.00 crore as of 30 September 2022 from Rs 2,271.20 crore as of 30 September 2021. Intangible assets increased from Rs 11.70 crore to Rs 50.70 crore.
Profit before tax grew 0.72% to Rs 70.30 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 13.5 crore, compared to Rs 4.7 crore. Effective tax rate was 19.20% compared to 6.73%.
Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 12.75% to Rs 56.80 crore. Equity capital stood at Rs 36.50 crore as of 30 September 2022 to Rs 36.50 crore as of 30 September 2021. Per share face Value remained same at Rs 2.00.
Promoters’ stake was 48.80% as of 30 September 2022 ,compared to 48.87% as of 30 September 2021 .
For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Natco Pharma has increased 67.20% to Rs 1316.7 crore. Sales of Pharmaceutical segment has gone up 67.54% to Rs 1,312.70 crore (accounting for 99.70% of total sales). Sales of Agro Chemical segment has gone down 0.00% to Rs 4.00 crore (accounting for 0.30% of total sales).
Profit before interest, tax and other unallocable items (PBIT) has jumped 178.24% to Rs 464.10 crore. PBIT of Pharmaceutical segment rose 168.07% to Rs 471.80 crore (accounting for 101.66% of total PBIT). PBIT of Agro Chemical segment rose 16.30% to Rs -7.70 crore (accounting for -1.66% of total PBIT).
PBIT margin of Pharmaceutical segment rose from 22.46% to 35.94%. PBIT margin of Agro Chemical segment rose from negative 230.00% to negative 192.50%. Overall PBIT margin rose from 21.18% to 35.25%.
Operating profit margin has jumped from 22.90% to 37.26%, leading to 172.10% rise in operating profit to Rs 490.60 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 26.17% to 14.68%. Purchase of finished goods cost rose from 2.37% to 5.79%. Employee cost decreased from 25.21% to 19.61%. Other expenses fell from 25.33% to 23.22%. Other income fell 0.36% to Rs 54.8 crore. PBIDT rose 131.79% to Rs 545.4 crore. Provision for interest rose 33.33% to Rs 8 crore. Loan funds declined from Rs 371.10 crore as of 30 September 2021 to Rs 85.60 crore as of 30 September 2022. Inventories declined from Rs 914.10 crore as of 30 September 2021 to Rs 749.30 crore as of 30 September 2022. Sundry debtors were lower at Rs 371.10 crore as of 30 September 2022 compared to Rs 465.80 crore as of 30 September 2021. Cash and bank balance rose to Rs 433.60 crore as of 30 September 2022 from Rs 164.90 crore as of 30 September 2021. Investments declined from Rs 392.40 crore as of 30 September 2021 to Rs 377.50 crore as of 30 September 2022.
PBDT rose 134.37% to Rs 537.4 crore. Provision for depreciation rose 18.69% to Rs 81.3 crore. Fixed assets increased to Rs 2,473.00 crore as of 30 September 2022 from Rs 2,271.20 crore as of 30 September 2021. Intangible assets increased from Rs 11.70 crore to Rs 50.70 crore.
Profit before tax grew 183.64% to Rs 456.10 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 78.9 crore, compared to Rs 20.7 crore. Effective tax rate was 17.30% compared to 12.87%.Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 169.24% to Rs 377.20 crore.
Equity capital stood at Rs 36.50 crore as of 30 September 2022 to Rs 36.50 crore as of 30 September 2021. Per share face Value remained same at Rs 2.00.
Promoters’ stake was 48.80% as of 30 September 2022 ,compared to 48.87% as of 30 September 2021 .
Cash flow from operating activities has turned positive Rs 733.80 crore for YTD ended September 2022 from negative Rs 49.90 crore for YTD ended September 2021. Cash flow used in acquiring fixed assets during the YTD ended September 2022 stood at Rs 147.20 crore, compared to Rs 117.20 crore during the YTD ended September 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 2,390.60 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 50.70 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
The Board of
Directors has recommended a second interim dividend of Rs 0.75 per equity share
of Rs 2 each, for FY 2022-23 . Record date is fixed as Tuesday the 22nd day of
November 2022.
In
Q2 FY23, Domestic formulations contributed 20.65% of total revenue, exports
62.61%, API 9.74%, Crop Health Sciences (CHS) 0.69% and others 6.31%.