Natco Pharma reports 14.5% decline in net profit at Rs 122 cr for Q1

Drug firm Natco Pharma on Wednesday reported a 14.49 per centdecline in its consolidated net profit to Rs 122.1 crore for the quarter ended June mainly on account of margin pressure on formulations.

The company had posteda net profit of Rs 142.8 crore for the corresponding period of the previous fiscal, Natco Pharma said in a BSE filing.

Total income of the company stood at Rs 582.1 crore for the quarter under consideration as against Rs 513.3 crore for the same period year ago, it added.

During the quarter, the company faced margin pressure on both domestic and international formulations, Natco Pharma said.

"In spite of lower margins during the first quarter, the company is confident of its business for remaining part of the financial year based on the order book and earnings outlook. The company expects a growth of over 25 per cent in its earnings for FY2020-21 compared to prior year," it added.

The board of directors has approved an interim dividend of Rs 1.25 per equity share of Rs 2 each for FY2020-21 , the filing said.

Shares of Natco Pharma were trading at Rs843.60per scrip on BSE, down 2.57 per cent over previous close.