- 15 Feb 2022
- ICICIdirect Research
NATCO Q3 DRIVEN BY EXPORTS AMID MARGIN DECLINE
NATCOPHARM - 1463 Change: -29.45 (-1.97 %)News: Revenues grew 57.8% YoY to Rs.560.5 crore due to sharp uptick in export formulations (up 136.3% YoY to Rs. 383.1 crore). Domestic formulations also posted growth of 5.6% YoY to Rs.100.6 crore while APIs declined 36.9% YoY to Rs.61.7 crore. EBITDA margins contracted 506 bps YoY to 18.2% mainly due to higher other expenditure amid a one-time expense against product licensing income. EBITDA grew 23.4% YoY to Rs.101.8 crore. Consequently net profit for the quarter grew 28.2% YoY to Rs.80.4 crore.
Views: Quarterly revenues were significantly better than I-direct estimates while margins was a miss. Natco is likely to have executed an one time deal in exports during Q3 along with continued traction for gRevlimid in Canada and recent US launch of gAfinitor, gZoetress and Everolimus. Domestic oncology continues to remain muted. Going forward, Natco expects growth on back of few high value launches in the US, continued growth in domestic formulations with new products and contribution from Crop Health division. We will get more insights post discussion with management.
Impact: Neutral