NATCO Pharma Shares Down 19% Following Poor Q3 Earnings

Shares of NATCO Pharma fell by 18.95% to ₹986 apiece on the BSE on February 13 after the company reported its Q3 numbers.

The pharma major furnished its December quarter earnings on the post-market hours of February 12, wherein it posted a decline in revenue, profit and operating income.

Net profit for the December quarter came at ₹132.4 crore against ₹212.7 crore in the year-ago period, a decline of 37.75%. Revenue from operations were down by 37.4% YoY in Q3FY25 at ₹474.8 crore, compared to ₹758.6 crore in the corresponding quarter of the previous year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) tumbled 85% YoY at ₹38.8 crore for the quarter under review as against ₹268.1 crore in Q3FFY24.

EBITDA margin fizzled out to 33% from 38.3% YoY.

Notably, the company’s weak set of earnings can be attributed to decline in export formulation business, which is the biggest contributor to the firm in terms of revenues. During the December quarter, revenue from export formulation halved to ₹285.8 crore from ₹605.6 crore in Q3 FY24. Revenue from domestic formulation remained stable at ₹961 crore as against ₹994 crore on a YoY basis.

The company also announced an interim dividend of ₹1.50 per equity share of ₹2 each for FY25. In an exchange filing NATCO Pharma said, “The date for taking on record of its shareholders eligible for the purpose of payment of third interim dividend, i.e., the record date, is fixed as Tuesday, 18th February 2025. The payment of the said interim dividend will start from 28th February 2025.”