Mumbai, Aug 14 (SocialNews.XYZ) Natco Pharma Limited on Friday reported a 57 per cent year-on-year (YoY) decline in consolidated net profit for the first quarter of the current financial year (Q1 FY27) as lower sales of its generic cancer drug lenalidomide weighed on revenue and operating performance.
The consolidated net profit net profit falling to Rs 206.5 crore from Rs 480.3 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.
The weak performance was primarily driven by lower sales of lenalidomide, the company's generic version of a cancer treatment drug, which significantly impacted its international business during the quarter.
Revenue from operations dropped 44.7 per cent to Rs 735.2 crore in the April-June quarter from Rs 1,328.9 crore a year earlier.
The company said the decline was largely attributable to lower revenues from lenalidomide, although the impact was partly offset by growth in its core business segments.
Operating performance also came under pressure during the quarter. EBITDA declined 67.4 per cent year-on-year to Rs 186 crore from Rs 571 crore, while EBITDA margin contracted sharply to 25.3 per cent from 43 per cent in the year-ago period.
Despite the revenue slowdown, the company managed to reduce its overall expenses. Total expenses stood at Rs 608.8 crore during the quarter, compared with Rs 818.7 crore in the corresponding period of the previous fiscal year.
Natco's domestic formulations business recorded healthy growth. Revenue from the segment rose to Rs 136.4 crore in the first quarter from Rs 107 crore a year earlier, as per its regulatory filing.
However, the company's international formulations business witnessed a steep decline. Revenue from the segment fell to Rs 477.1 crore from Rs 1,120.9 crore in the year-ago quarter.
The active pharmaceutical ingredients (API) business delivered a positive performance, with revenue increasing to Rs 66.7 crore from Rs 52.6 crore in the corresponding quarter last financial year.
Alongside the earnings announcement, Natco Pharma's board approved an interim dividend of Rs 1.50 per equity share.
The board also cleared a proposal to raise up to Rs 2,000 crore through a qualified institutional placement (QIP) and other permissible instruments, providing the company with financial flexibility for future growth initiatives.
Source: IANS
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