NATCO PHARMA Announces Quarterly Results (3QFY20); Net Profit Down 34.5%

Mon, 17 Feb

NATCO PHARMA has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

NATCO PHARMA Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	5,567	4,857	4,822	-0.7%	-13.4%
Other income	Rs m	233	332	308	-7.2%	32.2%
Turnover	Rs m	5,800	5,189	5,130	-1.1%	-11.6%
Expenses	Rs m	3,483	3,514	3,535	0.6%	1.5%
Gross profit	Rs m	2,084	1,343	1,287	-4.2%	-38.2%
Depreciation	Rs m	207	219	254	16.0%	22.7%
Interest	Rs m	63	62	53	-14.5%	-15.9%
Profit before tax	Rs m	2,047	1,394	1,288	-7.6%	-37.1%
Tax	Rs m	454	217	244	12.4%	-46.3%
Profit after tax	Rs m	1,593	1,177	1,044	-11.3%	-34.5%
Gross profit margin	%	37.4	27.7	26.7
Effective tax rate	%	22.2	15.6	18.9
Net profit margin	%	27.5	22.7	20.4

Year-on-Year Performance:

• The company's operating income during the quarter fell 13.4% on a year-on-year (YoY) basis. The expenses were up by 1.5% YoY during the same period.
• The company's operating profit declined by 38.2% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 26.7% in 3QFY20 as against 37.4% in 3QFY19.
• Depreciation charges increased by 22.7% and finance costs declined by 15.9% YoY, respectively.
• Other income increased by 32.2% YoY during the quarter.
• Net profit for the quarter declined by 34.5% YoY. Net profit margins during the quarter declined from 27.5% in 3QFY19 to 20.4% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 0.7% on a quarter-on-quarter (QoQ) basis. The expenses were up by 0.6% QoQ during the same period.
• The company's operating profit declined by 4.2% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 26.7% in 3QFY20 as against 27.7% in 2QFY19.
• Net profit for the quarter declined by 11.3% QoQ, while net profit margins declined from 22.7% in 2QFY19 to 20.4% in 3QFY20.

To see how NATCO PHARMA has performed over the last eight quarters,please visit here.

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NATCO PHARMA Share Price Performance

Over the last one year,NATCO PHARMA share price has moved up from Rs 594.4 to Rs 669.8, registering a Gain of Rs 75.4 or around 12.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,198.8 (down 1.5%). Over the last one year it has moved up from 13,433.0 to 14,198.8, a gain of 766 points (up 5.7%).

Overall, the S&P BSE SENSEX is up 14.4% over the year.

Current Valuations

At the current price of Rs 669.8, the price to earnings (P/E) ratio of NATCO PHARMA stands at 22.9 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.6 times.