Natco Pharma Q1 net profit jumps almost 70% to Rs 48 crore

Hyderabad-based Natco Pharma Limited on Tuesday reported a 69.75% jump in consolidated net profit to Rs 47.65 crore for the quarter ended June, 2016 on the back of increase in revenues from formulations, which offer higher margins compared to bulk chemicals.The company's net profit was Rs 28.07 crore in the year ago period.

Total revenues grew 45.38% to Rs 325.22 crore for the quarter under review from Rs 223.71 crore in the year ago period. Total expenditure also rose 45% to Rs 261.12 crore as the cost of materials consumed in this period more than doubled at Rs 130.83 crore as compared to Rs 57.44 crore.

Formulations' share in total income of the company rose to 87% in the quarter, compared to 76.49% in the corresponding quarter last fiscal. Profit before tax and finance costs in this quarter stood at Rs 97.95 crore. Of this Rs 90 crore has come from formulations while that of bulk chemicals declined 50% to Rs 6 crore even as the revenue from this segment remained almost flat at Rs 56.96 crore.