For
the quarter ending March 2023, consolidated Net sales (including other operating income) of Natco Pharma has increased 50.45% to Rs 897.9 crore compared to quarter ended Mar 2022. Sales of Pharmaceutical segment has gone up 46.08% to Rs 870.90 crore (accounting for 96.99% of total sales). Sales of Agro Chemical segment has gone up 4,400.00% to Rs 27.00 crore (accounting for 3.01% of total sales). PBIT of Pharmaceutical reported profit of Rs 327.20 crore compared to loss of Rs 34.00 crore. PBIT of Agro Chemical segment rose 98.88% to Rs -0.10 crore (accounting for -0.03% of total PBIT).
PBIT margin of Pharmaceutical segment rose from negative 5.70% to 37.57%. PBIT margin of Agro Chemical segment rose from negative 1,483.33% to negative 0.37%. Overall PBIT margin rose from 7.19% to 36.43%.
Operating profit margin (OPM) has turned from negative 3.12% to positive 37.77%, Operating profit for the quarter stood at Rs 339.10 crore compared to loss of Rs 18.60 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 36.70% to 17.48%. Purchase of finished goods cost fell from 6.18% to 6.13%. Employee cost decreased from 20.78% to 14.20%. Other expenses fell from 39.88% to 21.68%. Other income rose 110.14% to Rs 29 crore. PBIDT stood at Rs 368.10 crore compared to loss of Rs 4.8 crore. Provision for interest fell 59.70% to Rs 2.7 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 stood at Rs 365.40 crore compared to loss of Rs 11.5 crore. Provision for depreciation rose 7.61% to Rs 41 crore. Fixed assets declined from Rs 2,390.60 crore as of 31 March 2022 to Rs 2,303.40 crore as of 31 March 2023. Intangible assets increased from Rs 50.70 crore to Rs 187.80 crore.
Profit before tax reported profit of Rs 324.40 crore compared to loss of Rs 49.60 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 48.6 crore, compared to Rs 0.9 crore. Effective tax rate was 14.98% compared to negative 1.81%.
Minority interest was nil in both the periods. 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 .
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 declined from Rs 2,390.60 crore as of 31 March 2022 to Rs 2,303.40 crore as of 31 March 2023. Intangible assets increased from Rs 50.70 crore to Rs 187.80 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 .
Other Highlights
In
Q4 FY23, Domestic formulations contributed 9.90% of total revenue, exports
76.51%, API 7.85%, Crop Health Sciences (CHS) 2.91% and others 2.83%.
Company
acquired 100% shares in Natco-Colombia and Zista Pharma. Objective is to enter
new geographies for growth and increased profitability.