Natco Pharma has posted a consolidated net profit of ₹93.2 crore for the quarter ended March, which is 22.59% less compared to the ₹120.4 crore registered in the year earlier period.
Total income at ₹477.2 crore declined by almost 2% from ₹486.7 crore in the corresponding period of previous fiscal. For the full fiscal, the Hyderabad-headquartered drugmaker reported a consolidated net profit of ₹458.1 crore (₹642.4 crore) or about 29% lower.Total revenue declined by 9% to ₹2,022.4 crore (₹2,224.7 crore).The decline in revenue and profits was primarily due to a continued decline in Hepatitis C product portfolio and to an extent in oncology segment due to pricing pressures. The company also faced slowdown in business operations during the fourth quarter due to supply chain issues amid COVID-19 concerns, which were subsequently resolved, Natco Pharma said in a release.
While revenue from API (active pharmaceutical ingredients) during the fiscal improved to ₹355.2 crore (₹303 crore), formulations revenue declined sharply in the domestic market. The company reported a formulations (domestic) revenue of ₹540.5 crore (₹735 crore). Revenue from export of formulations, including profit share, dropped to ₹824.9 crore (₹885 crore).
Dividend
The company has declared a fourth interim dividend of ₹1 per equity share (of ₹2 each), resulting in a total dividend payout of ₹6.75 per equity share for the year.
Besides the dividend, the Board of Directors also approved an investment up to $750,000 in AACT Inc. to support R&D and development of oncological products. The U.S. firm has identified certain proprietary biotechnology, including certain pre-clinical pharmaceutical compounds useful for the treatment of acute myeloid leukemia (AML) and chronic myeloid leukemia (CML). There are plans to conduct pre-clinical development of these drugs. With this investment, Natco Pharma will have about 18.25% stake in AACT.