Photo: Reuters
Photo: Reuters

Natco Pharma net profit decline 9% in September quarter

Sales of active pharmaceutical ingredients, the key raw materials that go into the manufacture of drugs, declined 30% to `52 crore

Hyderabad: Natco Pharma Ltd on Friday posted a 9% fall in net profit in the quarter ended 30 September due to declining sales of active pharmaceutical ingredients.

The company reported a net profit of 29.6 crore in the three months compared with 32.4 crore in the year-ago period. Sales rose 7.2% to 235 crore.

Sales of generic drugs, which contribute about three-fourths of sales, grew 34% to 159 crore from 119 crore in the year-ago period. Sales of active pharmaceutical ingredients, the key raw materials that go into the manufacture of drugs, declined 30% to 52 crore.

Its operating profit margin declined 252 basis points year-on-year to 24.9% against ICICIdirect estimate of 26%, mainly on account of an increase in employee expenses, ICICIdirect said.

One basis point is one-hundredth of a percentage point.

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