Natco Pharma Q1 Profit Slumps 57% on Lenalidomide Sales Erosion; Plans ₹2,000-Crore QIP for Acquisitions
核心洞察
Natco Pharma's June quarter consolidated net profit fell 57% year-on-year to ₹206.5 crore, driven by lower sales of generic cancer drug Lenalidomide.
Total revenue declined nearly 43% to ₹794.4 crore, with international formulations dropping to ₹477.1 crore from ₹1,120.9 crore a year earlier.
The company's board approved a ₹2,000-crore Qualified Institutional Placement (QIP) to fund acquisitions, supplementing ₹3,500 crore in internal cash reserves.
Natco Pharma reported a 57% year-on-year slump in consolidated net profit to ₹206.5 crore for the June quarter, as sales of its generic cancer drug Lenalidomide — the generic version of once-blockbuster Revlimid — eroded following the expiry of its US patent earlier this year. Total revenue fell nearly 43% year-on-year to ₹794.4 crore, with the decline largely attributable to lower sales earnings from Lenalidomide.
The company said growth in its base business helped partially offset the drop. Management told analysts that, excluding the Lenalidomide therapy, its base business grew in double digits.
Segment Performance
International formulations, including profit share and subsidiaries, declined to ₹477.1 crore against ₹1,120.9 crore in the previous year period, according to the company's segmental revenue numbers.
Revenues from active pharmaceutical ingredients (API) stood at ₹66.7 crore compared to ₹52.6 crore in the corresponding period of the prior fiscal year. Domestic pharmaceutical formulations rose to ₹136.4 crore from ₹107 crore, while crop health sciences revenue increased to ₹40.8 crore from ₹34.7 crore. Other operating and non-operating income declined marginally to ₹73.4 crore from ₹75.4 crore.
Associate Company and Stake Increase
Revenue of associate company Adcock Ingram Holdings (搜索), South Africa, was ₹1,582.8 crore with profit after tax of ₹242.2 crore. Natco's share of profit, based on its 35.75% holding as of June 30, stood at ₹84.3 crore.
In July, Natco announced the acquisition of an additional 13.25% stake in Adcock Ingram Holdings (搜索), taking its total stake to 49%.
Fundraising and Acquisition Plans
Natco's board approved a ₹2,000-crore fund raise plan through a Qualified Institutional Placement (QIP). The fresh capital will come on top of ₹3,500 crore in internal cash reserves to support the company's acquisition push.
"We are looking at some interesting M&A opportunities, and the QIP proceeds will help us pursue them, along with our internal cash reserves," said Rajeev Nannapaneni, Vice Chairman, Natco Pharma.
Dividend
The Natco board declared an interim dividend of ₹1.5 per equity share of ₹2 each. The record date has been fixed as August 20, and payment of the interim dividend will begin from August 26.
Natco Pharma shares ended 5.23% lower on the BSE at ₹902.40 apiece.