Natco Pharma Q3 Net declines 52 pc

Drug firm Natco Pharma today posted a decline of 52 per cent in its consolidated net profit at Rs 14.34 crore for the third quarter ended December 31, 2014, hit by one-off items.
It had posted net consolidated profit of Rs 29.88 crore during the October-December quarter of the previous fiscal.
Net sales of the company also declined marginally by 1.02 per cent to Rs 184.27 crore during the period under review as against Rs 186.18 crore of the same period last fiscal, Natco Pharma said in a filing to the BSE.
"Exceptional item represents amount paid and accounted against settlement pending legal dispute Rs 1513 lakh," said the company in the filing.

In accordance with the requirements to Schedule II of the Companies Act, 2013, Natco said it has re-assessed the useful life and residual value of the fixed assets.
"(i) an amount of Rs 411 lakh has been charged to the opening balance of the retained earnings in respect of assets whose remaining useful life is nil as at 1 April 2014, ii) The profit for the quarters ended 31 December 2014, 30 September 2014 and nine months ended 31 December 2014 has decreased by Rs 334 lakh, Rs 299 lakh and Rs 939 lakh respectively on account of application of Schedule II," it said.

During the quarter, the company had acquired the promoters stake in NATCO Organics Limited for consideration other than cash and allotted 1,61,775 equity shares of NATCO Pharma Limited Rs. 10/- each, at a premium of Rs 1190/share.
Meanwhile, in a separate filing Natco Pharma informed that the board of the company has recommended an interim dividend of Rs 5 per equity share.
Shares of Natco Pharma today closed at Rs 1431 apiece on the BSE, down 0.22 per cent from their previous close.