- 10 Aug 2022
- ICICIdirect Research
Natco Q1 buoyed by first full quarter of gRevlimidNATCOPHARM - 556 Change: 4.60 (0.83 %)
News: Revenues grew 116% YoY to Rs 885 crore driven by 407% YoY growth in the export formulation business to Rs 737 crore mainly on back of gRevlimid sales. This was partly offset by de-growth of 55% YoY in the domestic formulation business to Rs 89 crore and 17% YoY decline in APIs to Rs 51 crore. EBITDA margins was up 1793 bps YoY at 44.7% while EBITDA grew 260% YoY to Rs 395 crore. Profit for the quarter increased by 327% YoY to Rs 320 crore in Q1FY23. The Board of Directors has declared an interim dividend of Rs 3.5 per equity share during Q1FY23.
View: Natco's numbers in Q4 were better than our estimates as both revenue and margins grew on account of a sharp uptick in exports for gRevlimid to US. The bump in profit share income for gRevlimd is likely due to better than expected pricing and high single digit market share in Q1FY23. However, we expect this to taper of gradually post the generic entry later in CY22. The company remains focused on the export business of gRevlimid to drive growth in FY23. Going forward, launch momentum in the US post gRevlimid and traction for domestic business remain key aspects to watch.