- 13 Nov 2024
- ICICI Securities
NATCO PHARMA Q2FY25- GREVLIMID MOMENTUM CONTINUE TO DRIVE NUMBERS
News: Revenues grew ~34% YoY to ₹ 1377 crore driven by export formulations which grew 53% to ₹ 1211 crore on the back of significant traction from anti-cancer drug gRevlimid. Typically, gRevlimid sales are high in Q4 and Q1 quarters. But Q2 momentum suggests significant market share gains. Other segments remained weak with 36% de-growth in APIs to ₹ 50 crore, flat growth in the domestic formulations to ₹ 102 core and 75% de-growth in the crop protection to ₹ 14 core. EBITDA grew 78% YoY to ₹ 811 crore while EBITDA margins improved 1460 bps to 59%. EBITDA growth was mainly driven by strong GPM improvement (~809 bps YoY to 87.1%). PAT grew 83% YoY to ₹ 677 crore.
Views: The performance, as expected, was completely dominated by gRevlimid. Such was the dominance that it eclipsed the slowdown in other segments. We will get some insight from the management in the earnings call.
Impact: Positive