Natco Pharma Q3 Results: Net profit declines 38% to ₹132.4 crore, dividend declared

Natco Pharma Q3 Results: NATCO Pharma Ltd reported a sharp decline of 37.75 percent in consolidated net profit for the December quarter, primarily impacted by a downturn in formulations exports. The company's consolidated net profit stood at ₹132.4 crore in Q3 FY2025, a drop from ₹212.7 crore recorded in the corresponding quarter of the previous fiscal year, according to a regulatory filing.

The pharmaceutical firm’s consolidated revenue from operations fell to ₹474.8 crore in Q3 FY2025, down from ₹758.6 crore in the year-ago period, reflecting a 37.4 percent decrease in earnings.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a drastic decline of 85.5 percent year-over-year, falling to ₹38.8 crore in Q3 FY2025 from ₹268.1 crore in Q3 FY2024. This steep drop in operating profits led to a significant contraction in the EBITDA margin, which plummeted by 2717 basis points to 8.2 percent from 35.3 percent in the corresponding quarter of the previous year. The contraction in margins underscored the challenges faced by the company during this period.

Total expenses for the quarter were recorded at ₹487.4 crore, marking a reduction from ₹539.3 crore in the same period last year. Despite the decline in expenses, the company's overall performance remained under pressure due to weak revenue generation.

A key factor behind the earnings slump was the steep fall in formulation exports, which dropped to ₹285.8 crore in Q3 FY2025 from ₹605.6 crore in Q3 FY2024. Meanwhile, domestic formulation sales also registered a decline, amounting to ₹96.1 crore in Q3 FY2025 compared to ₹99.4 crore in the corresponding period last year, as per the company’s investor presentation.

Dividend

In a separate development, the company’s board of directors, in a meeting held on Wednesday, declared a third interim dividend of ₹1.50 per equity share of ₹2 each for the financial year 2024-25. NATCO Pharma announced that the record date for determining shareholders eligible to receive the interim dividend has been set for Tuesday, February 18, 2025. The company further stated that the payment of the declared interim dividend will commence from February 28, 2025.