In This Article:
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Total Revenue: INR651.1 crore for Q3 FY25, compared to INR795.6 crore in the same period last year.
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Net Profit: INR132.4 crore for Q3 FY25, compared to INR212.7 crore in the same period last year.
Release Date: February 13, 2025
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) expects healthy growth in the upcoming quarters due to new product allocations and launches.
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The company has a significant cash reserve of INR3,264 crore, providing a strong financial position for potential acquisitions.
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Natco Pharma Ltd (BOM:524816) anticipates a substantial market share allocation for Revlimid in the next year, which could boost revenues.
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The company is actively pursuing strategic acquisitions to strengthen its US and ROW (Rest of the World) business segments.
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Natco Pharma Ltd (BOM:524816) has received two new product approvals, which are expected to positively impact future earnings.
Negative Points
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Natco Pharma Ltd (BOM:524816) reported a decline in consolidated total revenue and net profit compared to the same period last year.
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The absence of Revlimid sales significantly impacted the company's performance in the current quarter.
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High R&D expenses have contributed to the weaker financial performance, with ongoing projects causing a cash flow mismatch.
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The company's export formulation business saw a decline, affecting overall revenue.
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There is uncertainty regarding the timing and impact of future product launches, including potential delays in regulatory approvals.
Q & A Highlights
Q: What contributed to the other income of INR26 crore this quarter? A: Rajeev Nannapaneni, CEO, explained that the other income primarily came from interest income from deposits and a one-time pre-tax gain of INR90 crore from the sale of land.
Q: Why was the performance weak this quarter? A: The CEO mentioned that there was no contribution from Revlimid this quarter, which significantly impacted performance. Additionally, there were substantial R&D expenses that continued from the previous quarter.
Q: Can you provide an update on the Revlimid market share and future expectations? A: Currently, there is no quantity available, but Natco expects to receive one-third of the market allocation starting next quarter, which should improve performance.
Q: What is the status of the GLP1 opportunity and potential launch in India? A: The settlement date is confidential, but the CEO indicated that the opportunity is significant. The India launch is expected in March 2026, subject to regulatory approvals.