Natco Pharma fell 1.76% to Rs 850.60 after consolidated net profit dropped 14.49% to Rs 122.10 crore on 14.44% jump in net sales to Rs 563.40 crore in Q1 June 2020 over Q1 June 2019.
Profit before tax (PBT) declined 13.98% to Rs 158.10 crore in Q1 June 2020 as against Rs 183.80 crore in Q1 June 2019. Current tax expense for the quarter rose 3.65% to Rs 42.5 crore as against Rs 41 crore in Q1 June 2019. The Q1 result was declared during trading hours today, 12 August 2020.
Increase in revenue was driven primarily by exports formulations business. During the quarter, the company faced margins pressure on both domestic and international formulations. In spite of lower margins during the first quarter, the company is confident of its business for remaining part of the financial year based on the order book and earnings outlook. The company expects a growth of over 25% in its earnings for FY2020-21 compared to prior year.
The board has recommended an interim dividend of Rs 1.25 per equity share of Rs 2 each, during Q1 FY21.
Natco Pharma is among fastest growing pharmaceutical companies in India.
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