Natco Pharma Q4 net profit up 126% at Rs 54 cr

Total income up 5.28% to Rs 204 crore, helped by revenue growth from bulk chemicals and formulations

Natco Pharma Limited has reported a 126 per cent jump in its consolidated net profit to Rs 54.44 crore for the quarter ended March 2015, on the back of a reversal of Rs 31.17 crore of differed tax liabilities. However, the net profit from ordinary activities after tax was marginally down at Rs 23.27 crore, as compared with Rs 24.02 crore in the corresponding quarter last year.

Total income for the quarter grew 5.28 per cent to Rs 204 crore, as compared with Rs 193.76 crore in the corresponding previous quarter, helped by the revenue growth from bulk chemicals as well as formulations.

There was a steep rise in gross profit margins from bulk chemicals, which contributed Rs 25.93 crore to the gross profits, as compared to Rs 5.04 crore in the year ago period. The same from the formulations has come down to Rs 41.59 crore, as compared with Rs 48.99 crore.

On the differed tax issue the company said: "On the basis of management's assessment of its future business plan and the impact thereof on the future taxable income, the management believes that the company would continue to pay tax on income under the minium alternate tax(MAT) provisions of the Income Tax Act, 1961 over the next several years. Thus, deferred tax liabilities(net) aggregating to Rs 31.04 crore recognised in the earlier years on the timing differences which is now expected to be reversed during the MAT period is de-recognised in the current financial year".