Natco Pharma Sees 12% Share Price Decline Following 34% Drop in Q4 Net Profit to Rs 268 Crore

Natco Pharma Shares Plunge 12% on Weak Q4 Earnings

Natco Pharma shares suffered a significant decline on Friday, plummeting as much as 12 percent, following the company's weak set of March quarter earnings. The net profit for the quarter declined by a staggering 34 percent year-on-year.

The stock experienced a sharp intraday low of Rs 1,018 per share on the National Stock Exchange (NSE), marking a 13.4 percent drop from its previous close. This marked the second consecutive trading session in which the stock has been under pressure. The stock later staged a recovery, paring some of the losses to trade at Rs 1,023.70 per share, down a still significant 12.94 percent.

The company's consolidated net profit for the fourth quarter stood at Rs 268 crore, representing a 34 percent decline from the Rs 406.6 crore reported in the same period last year.

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A closer examination of the company's financials reveals a decline in revenue from operations, which fell by 39.5 percent to Rs 739 crore in the March quarter compared to Rs 1,221 crore in the same period a year ago.

The earnings before interest, tax, depreciation, and amortisation (EBITDA) also experienced a sharp decline, falling by 77 percent to Rs 127.5 crore from Rs 548 crore. The EBITDA margin contracted to 17.2 percent from 45 percent in the year-ago period.