February 13, 2025
New Delhi, India
Q3 Results
Shares of NATCO Pharma Ltd. tumbled 19% on Thursday, February 13, after the company reported disappointing Q3 FY25 earnings, with a sharp decline in revenue, profit, and operating income.
Q3 FY25 Earnings Highlights
- Net Profit: ₹132.4 crore, down 37.75% YoY (vs. ₹212.7 crore in Q3 FY24).
- Revenue from Operations: ₹474.8 crore, a 37.4% YoY decline (vs. ₹758.6 crore in Q3 FY24).
- EBITDA: ₹38.8 crore, plummeting 85.5% YoY (vs. ₹268.1 crore in Q3 FY24).
- EBITDA Margin: 33%, significantly down from 38.3% YoY and 60.5% in Q2 FY25.
Key Earnings Pressure
The export formulation segment, NATCO’s largest revenue driver, saw a massive drop:
- Export Formulation Revenue: ₹285.8 crore, down nearly 50% (vs. ₹605.6 crore in Q3 FY24).
- Domestic Formulation Revenue: ₹961 crore, largely stable (vs. ₹994 crore YoY).
Stock Market Reaction
Post-earnings, NATCO Pharma shares plunged 18.95% to ₹986 on the BSE, marking a fifth straight session of losses. The stock opened with a gap-down, later recovering slightly to ₹1,008.65 (-17%) around 10 AM.
Despite the sharp fall, NATCO gained 22% over the past year but remains under pressure, dropping:
- 17% in the last month
- 32% in six months
Dividend Announcement
The board declared an interim dividend of ₹1.50 per share for FY25.
Investors remain cautious as the company struggles with export headwinds and declining margins.
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