In This Article:
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Total Revenue: INR1,434.9 crores for Q2 FY25, up 35.3% from INR1,060.8 crores in the same period last year.
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Net Profit: INR676.5 crores for Q2 FY25, an increase of 83% from INR369 crores in the same period last year.
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Dividend: Second interim dividend of INR1.5 per equity share for FY24-25.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Natco Pharma Ltd (BOM:524816) reported a 35.3% increase in consolidated total revenue for Q2 FY25 compared to the same period last year.
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The company's net profit grew by 83% year-over-year, indicating strong financial performance.
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The growth was primarily driven by the export formulation business and a stable domestic pharma business.
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Natco Pharma Ltd (BOM:524816) declared a second interim dividend of INR1.5 per equity share for FY24-25.
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The company has a robust pipeline of high-value product filings, including semaglutide and olaparib, which are expected to drive future growth.
Negative Points
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The company anticipates a weaker December quarter compared to Q2, with some revenue tail left.
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There is uncertainty regarding the future price erosion of key products like Revlimid, which could impact profitability.
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The crop health sciences segment has been underperforming, with expectations to break even only by March 2026.
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Natco Pharma Ltd (BOM:524816) faces challenges in maintaining consistent growth due to the volatile nature of the pharmaceutical industry.
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The company is cautious about potential regulatory and market challenges in launching new products, particularly in the US market.
Q & A Highlights
Q: Should we expect strong year-over-year growth for Q3 this year, similar to last year? A: Rajesh Chebiyam, Executive Vice President, Crop Health Sciences: It's tough to judge as the quarter is still ongoing. However, we expect to grow reasonably well, maintaining a 20% growth compared to last year.
Q: How has the market share for Revlimid evolved in the second quarter compared to the first quarter? Are there any challenges in capturing a third of the market share by January? A: Rajesh Chebiyam: So far, everything is going smoothly, and we don't expect challenges this financial year. We will have more clarity around March or April next year.
Q: Can you provide an update on the high-value product filings post-Revlimid, such as semaglutide and olaparib? A: Rajesh Chebiyam: The biggest one is semaglutide, with one formulation settled and another under litigation. Olaparib is awaiting approval, with a trial set for a year and a half from now. We expect to file 23 interesting products in the next 1.5 to 2 years.