Natco Pharma Ltd's Q3FY25 Quarterly Results

Result Summary

• Natco Pharma Ltd reported a 54.6% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a decline of 18.2%.
• Its expenses for the quarter were down by 21.0% QoQ and 9.6% YoY.
• The net profit decreased 80.4% QoQ and decreased 37.8% YoY.
• The earnings per share (EPS) of Natco Pharma Ltd stood at 7.4 during Q3FY25.

Financial Statments for Q3FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Natco Pharma Ltd is a prominent player in the pharmaceutical industry, primarily known for its production and distribution of generic drugs, specialty pharmaceuticals, and active pharmaceutical ingredients (APIs). The company operates across various therapeutic areas, including oncology, cardiology, and neurology. Natco Pharma has a significant presence in both domestic and international markets, with a focus on delivering affordable healthcare solutions. As of my last update, the company has been involved in developing and launching new products, as well as expanding its production capabilities to meet growing demand. However, specific recent developments or strategic initiatives beyond this timeframe are not available in the provided data.

Revenue

In the third quarter of fiscal year 2025 (Q3FY25), Natco Pharma Ltd reported a total income of ₹651.10 crores. This represents a quarter-over-quarter (QoQ) decline of 54.6% from ₹1,434.90 crores in Q2FY25 and a year-over-year (YoY) decrease of 18.2% compared to ₹795.60 crores in Q3FY24. The notable reduction in revenue both sequentially and annually underscores significant changes in the company's financial performance over these periods. The factors contributing to these changes are not detailed in the provided data, and further information would be required to understand the underlying causes.

Profitability

The company's profitability witnessed a considerable decline in Q3FY25. Profit Before Tax (PBT) was recorded at ₹163.70 crores, marking an 80.0% reduction from the previous quarter's ₹818.20 crores and a 36.1% decrease from ₹256.30 crores in the same quarter of the previous fiscal year. Similarly, Profit After Tax (PAT) fell to ₹132.40 crores, representing an 80.4% drop from ₹676.50 crores in Q2FY25 and a 37.8% decline from ₹212.70 crores in Q3FY24. This substantial decrease in profitability is also reflected in the Earnings Per Share (EPS), which decreased from ₹37.80 in Q2FY25 to ₹7.40 in Q3FY25, and from ₹11.90 in Q3FY24, aligning with the percentage decrease in PAT.

Operating Metrics

Total expenses for Natco Pharma Ltd in Q3FY25 were ₹487.40 crores, which is a decrease of 21.0% from ₹616.70 crores in Q2FY25 and a reduction of 9.6% when compared to ₹539.30 crores in Q3FY24. The data show a decrease in expenses both on a QoQ and YoY basis. The tax expense in Q3FY25 was ₹31.30 crores, showing a substantial decrease of 77.9% from ₹141.70 crores in the previous quarter and a 28.2% decrease from ₹43.60 crores in the same quarter of the previous year. The changes in these operating metrics could indicate adjustments in operational efficiency or cost management strategies. However, without additional context, it is not possible to determine the exact reasons for these changes.