Natco Pharma

Consolidated net sales for full year increased by 7.16%

Jun 18, 2021 04:06 IST capital market

For quarter ended March 2021, consolidated net sales (including other operating income) of Natco Pharma has declined 27.15% to Rs 331.3 crore compared to quarter ended March 2020.    

Sales of Pharmaceutical segment has gone down 27.44% to Rs 330.00 crore (accounting for 99.61% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has slumped 38.27% to Rs 74.20 crore.  PBIT of Pharmaceutical segment fell 37.44% to Rs 75.20 crore (accounting for 101.35% of total PBIT).  

PBIT margin of Pharmaceutical segment fell from 26.43% to 22.79%.  Overall PBIT margin fell from 26.43% to 22.40%.  

Operating profit margin has slumped from 28.21% to 23%, leading to 40.61% decline in operating profit to Rs 76.20 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 20.67% to 24.19%.   Purchase of finished goods cost fell from 10.33% to 0.81%.   Employee cost increased from 15.64% to 25.63%.   Other expenses fell from 28.76% to 28.72%.   

Other income rose 26.79% to Rs 28.4 crore.  Loan funds declined from Rs 315.90 crore as of 31 March 2020 to Rs 267.60 crore as of 31 March 2021.  Inventories rose to Rs 798.20 crore as of 31 March 2021 from Rs 558.00 crore as of 31 March 2020.  Sundry debtors were lower at Rs 412.90 crore as of 31 March 2021 compared to Rs 551.30 crore as of 31 March 2020.  Cash and bank balance rose to Rs 283.50 crore as of 31 March 2021 from Rs 66.00 crore as of 31 March 2020.  Investments rose to Rs 303.70 crore as of 31 March 2021 from Rs 112.30 crore as of 31 March 2020 .  

Provision for depreciation fell 0.33% to Rs 30.4 crore.  Fixed assets increased to Rs 2,237.20 crore as of 31 March 2021 from Rs 2,093.60 crore as of 31 March 2020.  Intangible assets increased from Rs 8.80 crore to Rs 9.40 crore.  

Profit before tax shrink 39.42% to Rs 70.70 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 17.7 crore, compared to Rs 23.5 crore.  Effective tax rate was 25.04% compared to 20.14%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 43.68% to Rs 53.00 crore.  

Equity capital increased from Rs 36.40 crore as of 31 March 2020 to Rs 36.50 crore as of 31 March 2021.  Per share face Value remained same at Rs 2.00.  

Promoters stake was 48.87% as of 31 March 2021 ,compared to 48.93% as of 31 March 2020 .  

Full year results analysis.

Consolidated net sales (including other operating income) of Natco Pharma has increased 7.16% to Rs 2052.1 crore.  Sales of Pharmaceutical segment has gone up 7.05% to Rs 2,050.00 crore (accounting for 99.90% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 0.46% to Rs 592.90 crore.  PBIT of Pharmaceutical segment rose 0.66% to Rs 594.10 crore (accounting for 100.20% of total PBIT).  

PBIT margin of Pharmaceutical segment fell from 30.82% to 28.98%.  Overall PBIT margin fell from 30.82% to 28.89%.  

Operating profit margin has slumped from 30.42% to 29.54%, leading to 4.05% rise in operating profit to Rs 606.20 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 16.53% to 17.76%.   Purchase of finished goods cost rose from 6.42% to 8.88%.   Employee cost increased from 18.84% to 19.76%.   Other expenses fell from 28.93% to 24.74%.   

Other income fell 3.54% to Rs 103.6 crore.  Provision for interest fell 38.14% to Rs 13.3 crore.  Loan funds declined from Rs 315.90 crore as of 31 March 2020 to Rs 267.60 crore as of 31 March 2021.  Inventories rose to Rs 798.20 crore as of 31 March 2021 from Rs 558.00 crore as of 31 March 2020.  Sundry debtors were lower at Rs 412.90 crore as of 31 March 2021 compared to Rs 551.30 crore as of 31 March 2020.  Cash and bank balance rose to Rs 283.50 crore as of 31 March 2021 from Rs 66.00 crore as of 31 March 2020.  Investments rose to Rs 303.70 crore as of 31 March 2021 from Rs 112.30 crore as of 31 March 2020 .  

Provision for depreciation rose 17.13% to Rs 116.9 crore.  Fixed assets increased to Rs 2,237.20 crore as of 31 March 2021 from Rs 2,093.60 crore as of 31 March 2020.  Intangible assets increased from Rs 8.80 crore to Rs 9.40 crore.  

Profit before tax grew 1.92% to Rs 579.60 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 137.2 crore, compared to Rs 110.6 crore.  Effective tax rate was 23.67% compared to 19.45%.

Net profit attributable to owners of the company decreased 4.32% to Rs 440.90 crore.  

Equity capital increased from Rs 36.40 crore as of 31 March 2020 to Rs 36.50 crore as of 31 March 2021.  Per share face Value remained same at Rs 2.00.  

Promoters stake was 48.87% as of 31 March 2021 ,compared to 48.93% as of 31 March 2020 .  

Cash flow from operating activities decreased to Rs 298.80 crore for year ended March 2021 from Rs 417.30 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 254.60 crore, compared to Rs 358.60 crore during the year ended March 2020.  

Other Highlights

Natco Pharmas marketing partner, Breckenridge Pharmaceutical Inc (BPI), has received approval for its Abbreviated New Drug Application (ANDA) for Carfilzomib Vials (generic for KYPROLIS ), from the U.S. Food and Drug Administration (USFDA).

The company expects strong growth in FY22 due to multiple high value product launches in the USA, rebound in domestic India business with new products and contribution from Crop Health division.

Revenue contribution in Q4FY21- API segment contributed Rs 70.8 crore, Formulations Domestic Rs 81.8 Crore, Formulations Exports (including Profit Share and Foreign Subs) Rs 158.8 crore, Other Operating income and non-operating income Rs 47 crore and Crop Health Sciences (CHS) Rs 1.3 crore.

Revenue contribution in FY21- API segment contributed Rs 512 crore, Formulations Domestic Rs 410.2 Crore, Formulations Exports (including Profit Share and Foreign Subs) Rs 1077.1 crore, Other Operating income and non-operating income Rs 154.3 crore and Crop Health Sciences (CHS) Rs 2.1 crore.

The Share was trading around Rs 1120 before the results, after the results announcement share price fell around 3% to Rs 1082.

Currently Share price quotes around Rs 1063.

Natco Pharma : Consolidated Results

 

Quarter ended Year ended
Particulars 202103 202003 Var.(%) 202103 202003 Var.(%)
Net Sales (including other operating income) 331.3 454.8 -27.15 2,052.10 1,915.00 7.16
OPM (%) 23 28.21 -521 bps 29.54 30.42 -88 bps
OP 76.2 128.3 -40.61 606.2 582.6 4.05
Other Inc. 28.4 22.4 26.79 103.6 107.4 -3.54
PBIDT 104.6 150.7 -30.59 709.8 690 2.87
Interest 3.5 3.5 0 13.3 21.5 -38.14
PBDT 101.1 147.2 -31.32 696.5 668.5 4.19
Depreciation 30.4 30.5 -0.33 116.9 99.8 17.13
PBT 70.7 116.7 -39.42 579.6 568.7 1.92
Share of Profit/(Loss) from Associates 0 0 - 0 0 -
PBT before EO 70.7 116.7 -39.42 579.6 568.7 1.92
EO Income 0 0 - 0 0 -
PBT after EO 70.7 116.7 -39.42 579.6 568.7 1.92
Taxation 17.7 23.5 -24.68 137.2 110.6 24.05
PAT 53 93.2 -43.13 442.4 458.1 -3.43
Minority Interest (MI) 0 -0.9 - 1.5 -2.7 PL
Net profit 53 94.1 -43.68 440.9 460.8 -4.32
P/(L) from discontinued operations net of tax 0 0 - 0 0 -
Net profit after discontinued operations 53 94.1 -43.68 440.9 460.8 -4.32
EPS (Rs)* 2.91 5.16 -43.68 24.18 25.27 -4.32
Notes
* EPS is on current equity of Rs 36.47 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
Figures in Rs crore
Source: Capitaline Corporate Database

Natco Pharma : Consolidated Segment Results

 

Quarter ended Year ended
% of (Total) 202103 202003 Var.(%) % of (Total) 202103 202003 Var.(%)
Sales
Bulk Chemicals 0 0 0 -
Formulations 0 0 0 -
Pharmaceutical 99.61 330 454.8 -27.44 99.9 2,050.00 1,915.00 7.05
Agro Chemical 0.39 1.3 0 -
Total Reported Sales 100 331.3 454.8 -27.15 100 2,052.10 1,915.00 7.16
Less: Inter segment revenues 0 0 - 0 0 -
Net Sales 100 331.3 454.8 -27.15 100 2,052.10 1,915.00 7.16
PBIT
Bulk Chemicals 0 0 0 -
Formulations 0 0 0 -
Pharmaceutical 101.35 75.2 120.2 -37.44 100.2 594.1 590.2 0.66
Agro Chemical -1.35 -1 0 -
Total PBIT 100 74.2 120.2 -38.27 100 592.9 590.2 0.46
Less : Interest 3.5 3.5 0 13.3 21.5 -38.14
Add: Other un-allcoable 0 0 - 0 0 -
PBIT Margin(%)
Bulk Chemicals 0 0 0
Formulations 0 0 0
Pharmaceutical 22.79 26.43 -364.13 28.98 30.82 -183.94
Agro Chemical -76.92 0 -7,692.31 -57.14 0 -5,714.29
PBT 100 70.7 116.7 -39.42 100 579.6 568.7 1.92
LP: Loss to profit
PL: Profit to Loss
Figures in Rs crore
Source: Capitaline Corporate Database

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