Natco Pharma Q4 net profit down 60% at Rs 120 crore; FY19 income dips

Natco Pharma Limited reported on Monday a 60 per cent decline in consolidated net profit at Rs 120.4 crore for the quarter ended March 2019 (Q4) due to a fall in revenues, as compared to Rs 299.7 crore in the corresponding quarter previous year.

Natco Pharma revenues decreased by 38 per cent to Rs 486.7 crore in Q4, compared to Rs 787.9 crore in the year-ago period. 

For the full year ended March 2019 (FY19), the company's consolidated net profit stood at Rs 642.4 crore, a decrease of 7.6 percent from Rs 695.2 crore in the previous financial year (FY18). Total income, however, marginally declined to Rs 2,224.7 crore in FY19 from Rs 2242.4 in FY18.

"Although the revenue has been flat year-over-year, the marginal decline in profit was primarily due to write-off of Oseltamivir inventory by our marketing partner in the USA. The flu season in USA was weaker than expected, resulting in the write-off of inventory valued at approximately $5.5 million. On the domestic front, in spite of intense price pressures, the company has seen growth in the oncology segment," Natco Pharma said.

Formulations exports accounted for 39.78 per cent of the total revenues in FY19, while the share of domestic formulations business was 33 per cent.

The board of directors of the company declared a third interim dividend of Rs 1.25 per equity share of Rs 2 apiece, resulting in a total dividend payout of Rs 6.25 per equity share for FY19.