Natco Pharma reported consolidated net profit increased 40% to ₹386.30 crore for the quarter ended March as revenue from operations rose almost 19% on the back of higher formulations exports.
Revenue from operations increased to ₹1,068.3 crore (₹897.9 crore). The drugmaker had posted a consolidated net profit of ₹275.80 crore in the year earlier period.
A more than 34% increase in formulations exports to ₹954.9 crore (₹709.2 crore) was the highlight even as contribution of active pharmaceutical ingredients (APIs), domestic formulations as well as the crop health sciences segments to revenue declined compared to the year earlier period.
For 2023-24, Natco Pharma reported 94% higher consolidated net profit at ₹1,388.3 crore (₹715.3 crore), while total revenue increased almost 47% to ₹4,126.9 crore (₹2,811.7 crore). These are the highest ever consolidated revenue and profits and came despite the company, on domestic business front, taking a one-time charge of around ₹90 crore.
Elaborating on the one-time charge, the company said in pharma formulations domestic business, it charged and accounted for a return of stock from super-stockist to C&Fs amounting to about ₹35 crore due to change in the business model; on the Crop Health Sciences business, due to poor crop season the stock returns were more than expected by ₹25 crore; and provisions on assets of CHS division amounted to about ₹30 crore. This was done due to non-utilisation of certain assets used for manufacturing of agro intermediates.
