Q1 2025 Natco Pharma Ltd Earnings Call Transcript
Key Points
- Natco Pharma Ltd (BOM:524816) recorded a consolidated total revenue of INR1,410.7 crores for Q1 FY25, reflecting a 21.6% growth compared to the same period last year.
- The net profit for the period was INR668.5 crores, showing a significant 59% growth from the previous year's INR420.3 crores.
- The growth in revenue and profits was primarily driven by the Export Formulations business, with the domestic pharma business remaining stable.
- The company's export business, particularly in Canada, achieved its highest turnover ever, contributing significantly to overall revenue.
- Natco Pharma Ltd (BOM:524816) has a strong pipeline of future products, including Semaglutide and Olaparib, which are expected to drive growth in the coming years.
- The Agro business underperformed, with net sales only reaching INR15 crores due to returns and provisions for discounts.
- The company faces uncertainty regarding the future market dynamics and profitability of Revlimid post-January 2026.
- There are ongoing challenges with the FDA warning letter for the Kothur plant, impacting new approvals from that site.
- The domestic pharma business, while stable, only shows a modest growth of 8% to 10% after removing one-offs.
- The company has significant cash reserves but faces difficulties in finding suitable acquisition targets due to high valuations in the market.
Ladies and gentlemen, good day, and welcome to the Natco Pharma Limited Q1 FY25 post-results earnings conference call hosted by Batlivala & Karani Securities India Private Limited. (Operator Instructions)
Please note that this conference is being recorded.
I now hand the conference over to Mr. Rishikesh Patole from Batlivala & Karani Securities India Private Limited. Thank you, and over to you, sir.
Thank you. Good morning, everyone. On behalf of B&K Securities, I welcome you all to the Q1 FY25 earnings conference call of Natco Pharma. Hope everyone is in good health and doing well. On behalf of Natco today, we have with us Mr. Rajeev Nannapaneni, Director and CEO; Mr. Rajesh Chebiyam, Executive Vice President, Crop Health Sciences.
I now hand over the call to Rajesh for the management's opening remarks, post which we'll open the session for Q&A. Over to you, Rajesh.
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