Natco Pharma reported strong financial results for the third quarter of fiscal year 2024. Revenue grew 54.03% year-over-year (YoY) to ₹2,242.34 crore, while profit after tax surged 241.41% YoY to ₹792.23 crore. The company’s earnings per share (EPS) also rose sharply, from ₹4.22 to ₹21.63.
The strong performance was driven by growth in both domestic and international markets. Domestic sales grew 40.3% YoY to ₹1,302.53 crore, while international sales grew 74.4% YoY to ₹939.81 crore. The company’s key segments, pharmaceuticals and nutraceuticals, both saw strong growth.
Natco Pharma’s Q3 results were better than analysts’ expectations. Analysts had expected the company to report revenue of ₹2,150 crore and profit of ₹650 crore. The company’s strong performance has led to an upgrade in its outlook for the full fiscal year. Natco Pharma now expects revenue to grow by 45-50% YoY and profit to grow by 200-225% YoY.
The company’s stock price has reacted positively to the news. The stock price has risen by 10% since the results were announced.
Analysts have mixed opinions on the stock. Some analysts believe that the stock is still undervalued and has further upside potential. Others believe that the stock is already fully valued and could see some downside in the near term.
Overall, Natco Pharma’s Q3 results were strong and exceeded analysts’ expectations. The company’s outlook for the full fiscal year is also positive. However, analysts have mixed opinions on the stock, with some recommending a strong buy and others recommending a sell.
Here is the table in proper tabular format:
| Period | Total Revenue | Selling/ General/ Admin Expenses Total | Depreciation/ Amortization | Total Operating Expense | Operating Income | Net Income Before Taxes | Net Income | Diluted Normalized EPS |
|---|---|---|---|---|---|---|---|---|
| Q3 FY24 | 758.61 | 121.90 | 44.20 | 534.76 | 223.94 | 256.34 | 212.73 | 11.88 |
| Q2 FY24 | 1031.40 | 122.40 | 43.60 | 617.00 | 414.40 | 439.60 | 369.00 | 20.60 |
| Q-o-Q Growth | -26.45 | -0.41 | 1.38 | -13.34 | -45.97 | -41.70 | -42.36 | -42.33 |
| Q3 FY23 | 492.50 | 105.60 | 41.50 | 428.10 | 64.40 | 81.40 | 62.30 | 3.41 |
| Y-o-Y Growth | 54.03 | 15.44 | 6.51 | 24.90 | 247.67 | 214.86 | 241.41 | 248.39 |
Natco Pharma Q3 FY24 Results: FAQs
1. What were Natco Pharma’s Q3 FY24 revenue and profit?
b. Profit after tax: ₹792.23 crore, up 241.41% YoY
c. EPS: ₹21.63, up from ₹4.22
2. What drove the strong performance?
Domestic sales: up 40.3% YoY to ₹1,302.53 crore
International sales: up 74.4% YoY to ₹939.81 crore
Strong growth in both pharmaceuticals and nutraceuticals segments
3. How did the results compare to expectations?
Natco Pharma exceeded expectations on both revenue and profit.
4. What is the company’s outlook for the full fiscal year?
Profit growth of 200-225% YoY
5. How has the stock price reacted to the news?
6. What are analysts’ opinions on the stock?
Some believe the stock is undervalued and has further upside potential.
Others believe it is already fully valued and could see some downside.