- 28 May 2024
- ICICI Securities
NATCO PHARMA Q4FY24- BUMPER QUARTER DRIVEN BY GREVLIMID TRACTION
NATCOPHARM - 883 Change: -0.85 (-0.10 %)News: Revenues grew ~17% YoY to ₹ 1057 crore driven by export formulations which grew 35% to ₹ 955 crore on the back of significant traction from anti-cancer drug g Revlimid. Typically, gRevlimid sales are high in Q4 and Q1 quarters. Other segments remained weak with 31% de-growth in APIs to ₹ 50 crore, 43% de-growth in the domestic formulations to ₹ 52.4 core. EBITDA grew 43% YoY to ₹486 crore while EBITDA margins improved 821bps to 46%. EBITDA growth was mainly driven by strong GPM improvement (~1529 bps YoY to 86.5%). PAT grew 41% YoY to ₹ 386 crore.
Views: The performance, as expected, was completely dominated by gRevlimid. On the domestic fund the company took a one-time charge of ₹ 35 crore due to change in its business model which was reflected in the de-growth. The crop care business was a complete washout during the quarter due to 55 crore charge on account of 1) higher than expected stock returns and 2) non-utilisation charge for certain assets meant for agri intermediates. We will get some insight from the management in the earnings call.
Impact: Positive