Natco Pharma share price rises 8% to 52 week high post Q4 results

Stock Market Today: Natco Pharma share price gained almost 8% in the morning trade post Q4 results that were declared by the company post market hours on Monday.

The Natco Pharma share price opened at ₹1108.95 on the BSE , almost 8% higher over the previous close of ₹1029.20. On the NSE however the Natco Pharma share price  touched high of ₹1100 and was close to 52-week highs.

With todays gains Natco Pharma share price is up almost 70% in last one year giving handsome returns to the investors.

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Net profit Zooms in Q4

The Natco Pharma net profit during the January to March'2024 quarter at ₹386.3 crore grew 40% year on year over ₹276 crore in the year ago quarter. Notably the Net profit was up 81% over ₹212.7 Crore reported by the company in the December' 2023 quarter. 

The same was lifted by strong improvement in operating performance. The Earnings before Interest Tax Depreciation and amortisation (Ebitda) at ₹491 Crore grew 46% over ₹336 Crore in the year ago quarter.

The Natco Pharma revenues at ₹1068.3 Crore improved 19% year-on-year over ₹898 crore in the year ago quarter.

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Pharma segment on strong footing

It is the Pharmaceutical segment revenues' at ₹1074.6 Crore marked a sharp rise 23% of over ₹871 Crore in the year ago quarter.

Natco Pharma focusses on developing and launching Complex and Niche molecules in the US markets. The company currently has been benefitting from strong sales of generics of Revlimid. It also a robust piepline of product namely generics of olaparib, erdafitinib (both oncology products) and diabetes treatment semaglutide, etc.

Domestic sales though have seen some volatility nevertheless some new launches and overall portfolio is picking pace.  New launches as Trombonat by Natco Pharma in June 2023 in the domestic markets are doing well. As per Pharmatrack data the moving average twelve month sales till April'2024 had crossed ₹10 crore mark and stood at Rs14 crore. Natco Pharma domestic portfolio has been showing strong double digit value growth and well as volume growth as was evident from April data. The Natco Pharma sales grew 46.3% in Value terms and 29.7% in terms of units showed Pharmatrack data.

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Agro chemicals segment where Natco has been investing , nevertheless is facing challenges with the agrochemical industry reeling under the headwinds led by inventory destocking cycle and weak monsoon season of last year.

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