Drugmaker Natco Pharma has reported a sharp, almost 60%, decline in its consolidated net profit for the quarter ended March, which came on the back of a more than 38% drop in total revenue.
Net profit for the quarter stood at ₹120.4 crore, or 59.82% lower from the ₹299.7 crore of the year-earlier period. Net revenue at ₹486.7 crore declined 38.23% from ₹787.9 crore.
For the full fiscal, the consolidated net profit declined 7.6% to ₹642.4 crore (₹695.2 crore), while total revenue stood at ₹2,224.7 crore (₹2,242.4 crore).
The decline in profit was primarily due to write-off of Oseltamivir (Tamiflu generic) inventory by the firm’s marketing partner in the U.S. “The flu season in USA was weaker than expected resulting in the write-off of this inventory valued at approximately $5.5 million,” Natco Pharma said.
In the domestic business, despite intense price pressures, the company saw growth in the oncology segment. A company statement said the board of directors had declared the third interim dividend of ₹1.25 per equity share of ₹2 each, resulting in a total dividend payout of ₹6.25 per equity share for 2018-19. The firm’s shares gained 2.85% to ₹524.80 apiece on Monday.