Results     15-Nov-23
Analysis
Natco Pharma
OP up 380.59%
For the quarter ending Sept 2023, consolidated Net sales (including other operating income) of Natco Pharma has increased 138.69% to Rs 1031.4 crore compared to quarter ended Sept 2022.  Sales of Pharmaceutical segment has gone up 128.29% to Rs 979.60 crore (accounting for 94.98% of total sales).  Sales of Agro Chemical segment has gone up 1,626.67% to Rs 51.80 crore (accounting for 5.02% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 498.92% to Rs 443.80 crore.  PBIT of Pharmaceutical segment rose 483.16% to Rs 439.70 crore (accounting for 99.08% of total PBIT).  PBIT of Agro Chemical reported profit of Rs 4.10 crore compared to loss of Rs 1.30 crore.  

PBIT margin of Pharmaceutical segment rose from 17.57% to 44.89%.  PBIT margin of Agro Chemical segment rose from negative 43.33% to 7.92%.  Overall PBIT margin rose from 17.15% to 43.03%.  

Operating profit margin has jumped from 22.06% to 44.41%, leading to 380.59% rise in operating profit to Rs 458.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 21.36% to 16.27%.   Purchase of finished goods cost fell from 9.85% to 4.01%.   Employee cost decreased from 23.26% to 11.96%.   Other expenses fell from 25.45% to 22.99%.   

Other income rose 43.41% to Rs 29.4 crore.  PBIDT rose 320.90% to Rs 487.4 crore.  Provision for interest rose 10.53% to Rs 4.2 crore.  Loan funds rose to Rs 247.50 crore as of 30 September 2023 from Rs 85.60 crore as of 30 September 2022.  Inventories declined from Rs 749.30 crore as of 30 September 2022 to Rs 709.80 crore as of 30 September 2023.  Sundry debtors were higher at Rs 1,119.80 crore as of 30 September 2023 compared to Rs 371.10 crore as of 30 September 2022.  Cash and bank balance rose to Rs 719.50 crore as of 30 September 2023 from Rs 433.60 crore as of 30 September 2022.  Investments rose to Rs 387.30 crore as of 30 September 2023 from Rs 377.50 crore as of 30 September 2022 .  

PBDT rose 331.43% to Rs 483.2 crore.  Provision for depreciation rose 4.56% to Rs 43.6 crore.  Fixed assets increased to Rs 2,495.70 crore as of 30 September 2023 from Rs 2,332.60 crore as of 30 September 2022.  Intangible assets declined from Rs 191.10 crore to Rs 55.80 crore.  

Profit before tax grew 525.32% to Rs 439.60 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 70.6 crore, compared to Rs 13.5 crore.  Effective tax rate was 16.06% compared to 19.20%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 549.65% to Rs 369.00 crore.  

Equity capital decreased from Rs 36.50 crore as of 30 September 2022 to Rs 35.80 crore as of 30 September 2023 .  Per share face Value remained same at Rs 2.00.  

Promoters’ stake was 49.71% as of 30 September 2023 ,compared to 48.80% as of 30 September 2022 .  

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

Net sales (including other operating income) of Natco Pharma has increased 64.95% to Rs 2171.9 crore.  Sales of Pharmaceutical segment has gone up 57.80% to Rs 2,071.40 crore (accounting for 95.37% of total sales).  Sales of Agro Chemical segment has gone up 2,412.50% to Rs 100.50 crore (accounting for 4.63% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 104.27% to Rs 948.00 crore.  PBIT of Pharmaceutical segment rose 99.15% to Rs 939.60 crore (accounting for 99.11% of total PBIT).  PBIT of Agro Chemical reported profit of Rs 8.40 crore compared to loss of Rs 7.70 crore.  

PBIT margin of Pharmaceutical segment rose from 35.94% to 45.36%.  PBIT margin of Agro Chemical segment rose from negative 192.50% to 8.36%.  Overall PBIT margin rose from 35.25% to 43.65%.  

Operating profit margin has jumped from 37.26% to 45.40%, leading to 100.98% rise in operating profit to Rs 986.00 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 14.68% to 14.10%.   Purchase of finished goods cost fell from 5.79% to 3.89%.   Employee cost decreased from 19.61% to 12.14%.   Other expenses rose from 23.22% to 23.92%.   

Other income fell 10.40% to Rs 49.1 crore.  PBIDT rose 89.79% to Rs 1035.1 crore.  Provision for interest rose 5% to Rs 8.4 crore.  Loan funds rose to Rs 247.50 crore as of 30 September 2023 from Rs 85.60 crore as of 30 September 2022.  Inventories declined from Rs 749.30 crore as of 30 September 2022 to Rs 709.80 crore as of 30 September 2023.  Sundry debtors were higher at Rs 1,119.80 crore as of 30 September 2023 compared to Rs 371.10 crore as of 30 September 2022.  Cash and bank balance rose to Rs 719.50 crore as of 30 September 2023 from Rs 433.60 crore as of 30 September 2022.  Investments rose to Rs 387.30 crore as of 30 September 2023 from Rs 377.50 crore as of 30 September 2022 .  

PBDT rose 91.05% to Rs 1026.7 crore.  Provision for depreciation rose 7.13% to Rs 87.1 crore.  Fixed assets increased to Rs 2,495.70 crore as of 30 September 2023 from Rs 2,332.60 crore as of 30 September 2022.  Intangible assets declined from Rs 191.10 crore to Rs 55.80 crore.  

Profit before tax grew 106.01% to Rs 939.60 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 150.3 crore, compared to Rs 78.9 crore.  Effective tax rate was 16.00% compared to 17.30%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 109.25% to Rs 789.30 crore.  

Equity capital decreased from Rs 36.50 crore as of 30 September 2022 to Rs 35.80 crore as of 30 September 2023 .  Per share face Value remained same at Rs 2.00.  

Promoters’ stake was 49.71% as of 30 September 2023 ,compared to 48.80% as of 30 September 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 increased to Rs 2,436.00 crore as of 31 March 2023 from Rs 2,390.60 crore as of 31 March 2022.  Intangible assets increased from Rs 50.70 crore to Rs 55.20 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 second interim dividend of Rs 1.25 (62.50 %) each per equity share of Rs 2 (Rupees two only) each for the financial year 2023-24. Record date fixed for the purpose is 24th November 2023.

In Q2 FY24, Domestic formulations contributed 9.66% to total revenue, exports 74.8%, API 7.33%, Crop Health Sciences (CHS) 5.26% and others 2.95%.


Natco Pharma : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202309202209Var.(%)202309202209Var.(%)202303202203Var.(%)
Net Sales (including other operating income)1,031.40432.10138.692,171.901,316.7064.952,707.101,944.8039.20
OPM (%)44.4122.062,235 bps45.4037.26814 bps34.5613.552,101 bps
OP458.0095.30380.59986.00490.60100.98935.60263.50255.07
Other Inc.29.4020.5043.4149.1054.80-10.40104.6099.005.66
PBIDT487.40115.80320.901,035.10545.4089.791,040.20362.50186.95
Interest4.203.8010.538.408.005.0014.5017.70-18.08
PBDT483.20112.00331.431,026.70537.4091.051,025.70344.80197.48
Depreciation43.641.74.5687.181.37.13163.8142.614.87
PBT439.6070.30525.32939.6456.1106.01861.9202.2326.26
Share of Profit/(Loss) from Associates00-00-00-
PBT before EO439.670.3525.32939.6456.1106.01861.9202.2326.26
EO Income00-00-00-
PBT after EO439.670.3525.32939.6456.1106.01861.9202.2326.26
Taxation70.613.5422.96150.378.990.49146.632.2355.28
PAT36956.8549.65789.3377.2109.25715.3170320.76
Minority Interest (MI)00-00-00-
Net profit36956.8549.65789.3377.2109.25715.3170320.76
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations36956.8549.65789.3377.2109.25715.3170320.76
EPS (Rs)*20.603.17549.6544.0721.06109.2539.949.49320.76
* EPS is on current equity of Rs 35.82 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Natco Pharma : Consolidated Segment Results
td>-
 Quarter endedYear to DateYear ended
% of (Total)202309202209Var.(%)% of (Total)202309202209Var.(%)% of (Total)202303202203Var.(%)
Sales
Bulk Chemicals0.000.000.00-
Formulations0.000.000.00-
Pharmaceutical94.98979.60429.10128.2995.372,071.401,312.7057.8098.492,666.201,939.9037.44
Agro Chemical5.0251.803.001,626.674.63100.504.002,412.501.5140.904.90734.69
Total Reported Sales100.001,031.40432.10138.69100.002,171.901,316.7064.95100.002,707.101,944.8039.20
Less: Inter segment revenues 0.000.00- 0.000.00 0.000.00-
Net Sales100.001,031.40432.10138.69100.002,171.901,316.7064.95100.002,707.101,944.8039.20
PBIT
Bulk Chemicals0.000.000.00-
Formulations0.000.000.00-
Pharmaceutical99.08439.7075.40483.1699.11939.60471.8099.15101.37888.40248.00258.23
Agro Chemical0.924.10-1.30LP0.898.40-7.70LP-1.37-12.00-28.1057.30
Total PBIT100.00443.8074.10498.92100.00948.00464.10104.27100.00876.40219.90298.54
Less : Interest4.203.8010.538.408.005.0014.5017.70-18.08
Add: Other un-allcoable0.000.00-0.000.00-0.000.00-
PBIT Margin(%)
Bulk Chemicals 0.000.000.00
Formulations 0.000.000.00
Pharmaceutical 44.8917.572,731.40 45.3635.94941.94 33.3212.782,053.67
Agro Chemical 7.92-43.335,124.84 8.36-192.5020,085.82 -29.34-573.4754,412.95
PBT100.00439.6070.30525.32100.00939.60456.10106.01100.00861.90202.20326.26
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