- 31 May 2022
- ICICIdirect Research
gRevlimid drives Natco Pharma revenues, one-offs hit profitability
NATCOPHARM - 1593 Change: 0.90 (0.06 %)News: Revenues grew 80% YoY to | 597 crore driven by 193% YoY growth in Export Formulation business to | 465 crore mainly on back of gRevlimid sales. This was partly offset by de growth of 8% YoY in Domestic formulation business to | 77 crore and 31% YoY decline in APIs to | 49 crore. EBITDA Margins adjusted for inventory write-off of | 232 crore and provisioning of | 46 crore was at 43%. Adjusted EBITDA stood at | 259 crore. Natco booked loss of | 50.5 crore for the quarter versus profit of | 53 crore in Q4FY21
Views: Natco's revenue grew on the back of sharp uptick in exports and Natco remains focused on export business of gRevlimid to drive growth in FY23. Natco was carrying significant inventory of Covid products and write-off is mainly due to diminishing Covid opportunities. Going forward, launch momentum in US post gRevlimid and traction for domestic business remains key aspects to watch
Impact: Neutral