Natco Pharma share price jumps 9% at open after multi-fold surge in Q2, dividend announcement

Natco Pharma share price opened over 9% higher on Wednesday after the company clocked a multi-fold jump in its net profit for the second quarter for FY24 along with the announcement of dividend for shareholders. Natco Pharma shares opened 9.59% higher at ₹869.95 apiece on the BSE.

Natco Pharma on Tuesday reported a net profit of ₹369 crore in the quarter ended September 2023, registering a sharp growth of 550% from ₹56.8 crore a year ago.

The company’s total sales in Q2FY24 more than doubled to ₹1,060.8 crore from ₹452.6 crore, YoY.

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“The company business was strong during the quarter due to growth in formulation exports and increased sales in domestic agrochemical business,” Natco Pharma said in a release.

Its API segment revenue increased to ₹77.8 crore during the quarter under review from ₹44.1 crore in the year-ago quarter.

Formulations segment exports revenue jumped to ₹792.3 crore from ₹283.4 crore, YoY, while domestic formulations business revenue grew to ₹102.5 crore from ₹93.5 crore, YoY.

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Crop Health Sciences business revenue in Q2FY24 surged to ₹55.8 crore from ₹3 crore in the corresponding quarter of last fiscal year.

Other Operating income & non-operating income rose to ₹32.4 crore from ₹28.6 crore, YoY.

The Board of Directors of Natco Pharma declared a second interim dividend of ₹1.25 per equity share of ₹2 each, for FY24.

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The date for taking on record of its shareholders eligible for the purpose of payment of second interim dividend i.e., record date is fixed as Friday, November 24, 2023, the company said.

The payment of said interim dividend will start from December 1, 2023, it added.

Natco Pharma shares have declined over 6% in one month, while the stock is up more than 41% year-to-date (YTD).

At 9:20 am, Natco Pharma shares were trading 3.80% higher at ₹823.95 apiece on the BSE.

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