- 30 May 2023
- ICICI Securities
NATCO PHARMA REPORTS REVENUE BEAT, MARGINS MISS DUE TO SPIKE IN INPUT COST
NATCOPHARM - 879 Change: 1.30 (0.15 %)News: Revenue improved 50.5% YoY to Rs 897.9 crore. Segmental mix during the quarter includes domestic formulations, which was up 19.4% YoY at Rs 91.8 crore while export formulations came at Rs 709.2 crore up 52.5%, API business was at Rs 72.8 crore, up 49.8% and crop protection at Rs 27 crore against Rs 0.6 crore in the same period last year. On the operational front, it turned EBITDA positive YoY at Rs 339.1 crore and margins came at 37.8%. Adjusted PAT came in at Rs 274.7 crore.
Views: Q4 numbers were better on the revenues front while margins were below our estimates. Strong beat in exports sales was mainly on account of significant traction from gRevlimid. However, the scenario is getting competitive with more players are expected to launch the same in the due course. On the domestic front, there was a sequential decline due to competition but crop protection witnessed strong growth although the numbers were below our estimates. As the age-old strategy of focusing on niche products across the globe becoming less remunerative due to competition, the company is looking for portfolio expansion.
Impact: Neutral