NATCO PHARMA Announces Quarterly Results (3QFY19); Net Profit Down 26.7%
Thu, 14 Feb

NATCO PHARMA has announced its results for the quarter ended December 2018. Here is a detailed performance review of the same:

NATCO PHARMA Quarterly Financials

No. of Mths
Qtr. Ending
3
Dec-17*
3
Sep-18*
3
Dec-18*
QoQ ChangeYoY Change
Net SalesRs m5,6225,4355,5672.4%-1.0%
Other incomeRs m114400233-41.8%104.4%
TurnoverRs m5,7365,8355,800-0.6%1.1%
ExpensesRs m2,7573,2303,4837.8%26.3%
Gross profitRs m2,8652,2052,084-5.5%-27.3%
DepreciationRs m1722022072.5%20.3%
InterestRs m43506326.0%46.5%
Profit before taxRs m2,7642,3532,047-13.0%-25.9%
TaxRs m590537454-15.5%-23.1%
Profit after taxRs m2,1741,8161,593-12.3%-26.7%
Gross profit margin%51.040.637.4
Effective tax rate%21.322.822.2
Net profit margin%37.931.127.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter fell 1.0% on a year-on-year (YoY) basis. The expenses were up by 26.3% YoY during the same period.
  • The company's operating profit declined by 27.3% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 37.4% in 3QFY19 as against 51.0% in 3QFY18.
  • Depreciation charges increased by 20.3% and finance costs increased by 46.5% YoY, respectively.
  • Other income increased by 104.4% YoY during the quarter.
  • Net profit for the quarter declined by 26.7% YoY. Net profit margins during the quarter declined from 37.9% in 3QFY18 to 27.5% in 3QFY19.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 2.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 7.8% QoQ during the same period.
  • The company's operating profit declined by 5.5% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 37.4% in 3QFY19 as against 40.6% in 2QFY18.
  • Net profit for the quarter declined by 12.3% QoQ, while net profit margins declined from 31.1% in 2QFY18 to 27.5% in 3QFY19.

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

NATCO PHARMA Share Price Performance

Over the last one year, NATCO PHARMA share price has moved up from Rs 782.8 to Rs 608.0, registering a Loss of Rs 174.8 or around 22.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,757.6 (up 0.6%). Over the last one year it has moved down from 14,417.3 to 13,757.6, a gain of 660 points (down 4.6%).

Overall, the S&P BSE SENSEX is up 5.4% over the year.

Current Valuations

At the current price of Rs 608.0, the price to earnings (P/E) ratio of NATCO PHARMA stands at 12.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.3 times.