- 11 Nov 2022
- ICICIdirect Research
Natco posts subdued performance with missed estimates on all fronts
NATCOPHARM - 633 Change: 3.30 (0.52 %)News:
Revenue increased 14.6% YoY to Rs432 crore. EBITDA margins increased 336 bps YoY to 22.1% but missed our expectation of 27%, EBITDA increased 35.2% YoY to Rs95.3 crore. Adjusted Net Profit decreased 12.7% YoY to Rs56.8 crore. Domestic Formulations de-grew 9.5% YoY to 94 crore, while Export formulations jumped 48.8% YoY to Rs283 crore.
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Numbers were below our expectations especially on the margins front due lower than expected profit share for gRevlimid which was launched in Q1. In the domestic formulations we believe the oncology franchisee is still far away from the pre-Covid level. Competitive scenario in the US generics and pricing pressure in the domestic oncology business has forced company to explore into branded agrochem space which is a long-drawn strategy.
Impact:
Negative