NATCO Pharma shares nosedive 16% post-Q3 numbers; here is what weighed on the sentiment

The drug manufacturing company on Wednesday reported a 37.75% decline in consolidated net profit to ₹132.4 crore in the December quarter, hit by a drop in formulations exports.

The company had posted a consolidated net profit of ₹212.7 crore in the third quarter of the previous fiscal year, NATCO Pharma said in a regulatory filing.

At 9:30 am, shares of the pharma company plunged 16.49% to ₹1016.05 apiece on BSE.

NATCO Pharma’s consolidated revenue from operations in the quarter under review stood at ₹474.8 crore as compared to ₹758.6 crore in the same period a year ago, it added.

Total expenses in the third quarter were lower at ₹487.4 crore as compared to ₹539.3 crore in the year-ago period, the company said.

Formulation exports in the third quarter were lower at ₹285.8 crore as compared to ₹605.6 crore in the same period of the last fiscal year. Formulation sales in the domestic market stood at ₹96.1 crore, down from ₹99.4 crore in the year-ago period, NATCO Pharma said in an investor presentation.

On the other hand, API (active pharmaceutical ingredient) revenue stood at ₹66.6 crore, up from ₹46.3 crore in the corresponding quarter last fiscal year, it added.

The board of directors at their meeting held on Wednesday declared a third interim dividend of ₹1.50 each per equity share of ₹2 each for the financial year 2024-25, the company said.

Meanwhile, India's pharma exports are expected to double to $65 billion by 2030 and touch $350 billion in value terms by 2047, moving to top five position globally by diversifying its product basket, according to a report.

While India is the largest supplier of generic drugs globally, accounting for one in five generic drugs sold worldwide, the nation ranks 11th in terms of export value.