Natco Pharma slips as Chennai plant shuts operations due to flooding

Natco Pharma fell 1.76% to Rs 515 at 13:00 IST on BSE after the company said its wholly-owned subsidiary's active pharmaceuticals ingredient plant operations at Chennai are temporarily suspended due to flooding.

The announcement was made during trading hours today, 2 December 2015.

Meanwhile, the BSE Sensex was down 93.88 points, or 0.36%, to 26,075.53.

On BSE, so far 31,000 shares were traded in the counter, compared with an average volume of 13,684 shares in the past one quarter.

The stock hit a high of Rs 534.20 and a low of Rs 508.05 so far during the day. The stock hit a record high of Rs 598 on 26 November 2015. The stock hit a 52-week low of Rs 260.38 on 17 December 2014.

The stock had outperformed the market over the past one month till 1 December 2015, rising 2.13% compared with 1.83% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 16.25% as against Sensex's 1.84% decline.

The mid-cap company has an equity capital of Rs 34.83 crore. Face value per share is Rs 2.

Natco Pharma stated that its wholly-owned subsidiary's active pharmaceuticals ingredient (API) plant at Manali Industrial Area in Chennai has temporarily suspended operations due to flooding caused by incessant rains in the plant area.

The unit manufactures a few oncology related APIs at its Manali site. The company believes that this temporary shutdown should not impact/impair its pipeline launches associated with this plant. The unit is also adequately insured for any losses it has incurred in fixed assets, raw materials and loss in production including work-in-progress. Actual losses will be assessed once this natural calamity passes by, and the plant is back in full operational mode, the company added.

On a consolidated basis, net profit of Natco Pharma declined 8.6% to Rs 29.57 crore on 7.8% rise in net sales to Rs 229.18 crore in Q2 September 2015 over Q2 September 2014.

Natco Pharma manufactures generic dosage forms, bulk actives and intermediates for the Indian and international markets.

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