NATCO PHARMA 2024-25 Annual Report Analysis

Mon, 1 Sep

NATCO PHARMA has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

NATCO PHARMA Income Statement Analysis

• Operating income during the year rose 2.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 52.3% in FY25 as against 43.8% in FY24.
• Depreciation charges increased by 17.8% and finance costs increased by 2.1% YoY, respectively.
• Other income grew by 152.5% YoY.
• Net profit for the year grew by 33.3% YoY.
• Net profit margins during the year grew from 34.7% in FY24 to 45.2% in FY25.

NATCO PHARMA Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	39,988	40,945	2.4%
Other income	Rs m	1,281	3,235	152.5%
Total Revenues	Rs m	41,269	44,180	7.1%
Gross profit	Rs m	17,514	21,421	22.3%
Depreciation	Rs m	1,868	2,200	17.8%
Interest	Rs m	192	196	2.1%
Profit before tax	Rs m	16,735	22,260	33.0%
Tax	Rs m	2,852	3,756	31.7%
Profit after tax	Rs m	13,883	18,504	33.3%
Gross profit margin	%	43.8	52.3
Effective tax rate	%	17.0	16.9
Net profit margin	%	34.7	45.2

Live Now: The Small Cap Proxy Players Briefing

NATCO PHARMA Balance Sheet Analysis

• The company's current liabilities during FY25 down at Rs 9 billion as compared to Rs 10 billion in FY24, thereby witnessing an decrease of -11.1%.
• Current assets rose 17% and stood at Rs 47 billion, while fixed assets rose 24% and stood at Rs 35 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 82 billion as against Rs 69 billion during FY24, thereby witnessing a growth of 19%.

NATCO PHARMA Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	58,531	73,339	25.3
Current Liabilities	Rs m	9,728	8,646	-11.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	68,869	82,289	19.5
Current assets	Rs m	40,235	46,880	16.5
Fixed Assets	Rs m	28,634	35,409	23.7
Total Assets	Rs m	68,869	82,289	19.5

NATCO PHARMA Cash Flow Statement Analysis

• NATCO PHARMA's cash flow from operating activities (CFO) during FY25 stood at Rs 17 billion, an improvement of 37.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -14 billion, an improvement of 39.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -2 billion, an improvement of 14% on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs 57 million from the Rs -615 million net cash flows seen during FY24.

NATCO PHARMA Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	12,116	16,620	37.2%
Cash Flow from Investing Activities	Rs m	-10,327	-14,439	-
Cash Flow from Financing Activities	Rs m	-2,469	-2,124	-
Net Cash Flow	Rs m	-615	57	-

Current Valuations for NATCO PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 103.3, an improvement from the EPS of Rs 77.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 865.4, stands at 9.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	223.3	228.6
TTM Earnings per share	Rs	77.5	103.3
Diluted earnings per share	Rs	77.5	103.3
Price to Cash Flow	x	10.8	10.4
TTM P/E ratio	x	12.3	9.1
Price / Book Value ratio	x	2.5	2.9
Market Cap	Rs m	148,509	214,583
Dividends per share (Unadj.)	Rs	9.5	6.0

Ratio Analysis for NATCO PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.4x during FY25, from 4.1x during FY24. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 114.6x during FY25, from 88.2x during FY24. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 25.2% during FY25, from 23.7% during FY25. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 30.6% during FY25, from 28.9% during FY24. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 22.7% during FY25, from 20.4% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	4.1	5.4
Debtors’ Days	Days	109	105
Interest coverage	x	88.2	114.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.4	22.7
Return on equity	%	23.7	25.2
Return on capital employed	%	28.9	30.6

To see how NATCO PHARMA has performed over the last 5 years, please visit here.

NATCO PHARMA Share Price Performance

Over the last one year, NATCO PHARMA share price has moved down from Rs 1,537.5 to Rs 865.4, registering a loss of Rs 672.1 or around 43.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 43,804.5 (up 0.4%). Over the last one year it has moved up from 43,177.3 to 43,804.5, a gain of 627 points (up 1.5%).

Overall, the S&P BSE SENSEX is down 2.0% over the year.

(To know more, check out historical annual results for NATCO PHARMA and quarterly results for NATCO PHARMA)