Natco Pharma's net profit up 70% in June quarter

Total income from operations grew 45.4% to Rs 325.2 crore, from Rs 223.7 crore a year ago

Hyderabad-based Natco Pharma Limited has reported a 69.7 per cent jump in its consolidated net profit at Rs 47.6 crore for the quarter ended June, on the back of an increase in revenue from formulations. The company's net profit was Rs 28.07 crore in the corresponding period last year.

Total income from operations grew 45.4 percent to Rs 325.2 crore, from Rs 223.7 crore a year ago. Total expenditure also rose 45 per cent to Rs 261.1 crore, as the cost of materials consumed in this period more than doubled at Rs 130.8 crore, compared with Rs 57.4 crore in the year-ago period.

The formulations' share in total income of the company rose to 87 per cent, against 76.5 per cent in the corresponding of the previous quarter. The profit before tax and finance costs in this quarter stood at Rs 97.9 crore. Of this, Rs 90 crore has come from formulations, while that of bulk chemicals declined 50 per cent to Rs 6 crore, even as the revenue from this segment remained almost flat at about Rs 57 crore.

Natco Pharma management said the growth was predominantly driven by increased sales of its oncology and Hepatitis C products in India. The company's share on Tuesday ended lower by 1.6 per cent or Rs 10.5 at Rs 625.8 on the BSE.