Natco Pharma Q1 net profit rises multi-fold to Rs 320 cr on higher revenue

Natco Pharma Ltd on Tuesday reported a multifold rise in consolidated net profit to Rs 320.4 crore for the first quarter ended June 30, on higher revenue from the pharmaceutical vertical.

The company had posted a consolidated net profit of Rs 75 crore in the same period last fiscal, Natco Pharma said in a regulatory filing.

Its consolidated revenue from operations during the quarter under review stood at Rs 884.6 crore compared to Rs 410.3 crore in the same period last fiscal, it added.

The pharmaceutical segment revenue increased to Rs 883.6 crore from Rs 409.7 crore in the first quarter of last year. This was inclusive of an income from the settlement of claims received by the company's arm Natco Pharma (Canada) Inc under a settlement agreement.

"During the quarter, export sales of Lenalidomide product to the US was a major contributor to the revenue and profitability of the business," Natco said, adding domestic formulations business remained steady.

Agrochemicals vertical registered revenue of Rs 1 crore, up from Rs 60 lakh in the year-ago quarter, the company said.

The total expenses in the first quarter were higher at Rs 533.1 crore against Rs 336.3 crore a year ago. There was a one-time cost associated with retirement schemes during the quarter and higher than usual R&D costs for product development, it added.

The company paid compensation totalling Rs 29.1 crore under the voluntary retirement scheme during the quarter ended June 30, 2022, Natco said.

The board of directors of the company has also approved an interim dividend of Rs 3.50 each per equity share of Rs 2 each for the financial year 2022-23, the filing said.