Zafar Iqbal
Introduction
NATCO Pharma Ltd experienced a significant drop in its share price on Thursday, February 13, 2025, following the release of its third-quarter financial results. The company’s consolidated net profit saw a substantial decline, leading to a sharp reaction in the stock market.
Stock Performance Overview
On the Bombay Stock Exchange (BSE), NATCO Pharma’s shares opened at ₹986, a decrease from the previous close of ₹1,216.65. The stock further declined to an intra-day low of ₹975, marking a 19.86% drop. Similarly, on the National Stock Exchange (NSE), the shares fell by 19.99% to ₹975.05. This downturn occurred despite overall positive market trends. citeturn0search1
Financial Highlights: Q3 FY25 Results
In the quarter ending December 2024, NATCO Pharma reported a consolidated net profit of ₹132.4 crore, a 37.75% decrease from the ₹212.7 crore reported in the same quarter the previous year. The company’s revenue from operations also declined by 37.4%, standing at ₹474.8 crore compared to ₹758.6 crore in the corresponding period last year. citeturn0search2
Breakdown of Revenue Streams
- Formulation Exports: The company faced a significant decline in formulation exports, which amounted to ₹285.8 crore in Q3 FY25, down from ₹605.6 crore in the same quarter of the previous fiscal year. citeturn0search9
- Domestic Formulation Sales: Domestic sales of formulations slightly decreased to ₹96.1 crore from ₹99.4 crore year-over-year.
- Active Pharmaceutical Ingredients (API): On a positive note, revenue from APIs increased to ₹66.6 crore, up from ₹46.3 crore in the corresponding quarter of the previous year.
Historical Stock Performance
Over the past year, NATCO Pharma’s stock had provided investors with a 15.86% return and an impressive 86.01% return over two years. However, the recent downturn has led to a 25% decline in the stock’s value over the past week. Technically, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. citeturn0search1
Recent Developments
Despite the financial challenges, NATCO Pharma received approval from the U.S. health regulator for its generic version of Everolimus tablets for oral suspension. These tablets are indicated for patients with tuberous sclerosis complex. The approval covers strengths of 2mg, 3mg, and 5mg. citeturn0search1
Specification Table
| Financial Metric | Q3 FY25 | Q3 FY24 | Year-over-Year Change |
| Net Profit (₹ crore) | 132.4 | 212.7 | -37.75% |
| Revenue from Operations (₹ crore) | 474.8 | 758.6 | -37.4% |
| Formulation Exports (₹ crore) | 285.8 | 605.6 | -52.8% |
| Domestic Formulation Sales (₹ crore) | 96.1 | 99.4 | -3.3% |
| API Revenue (₹ crore) | 66.6 | 46.3 | +43.9% |
Conclusion
NATCO Pharma’s recent financial performance highlights significant challenges, particularly in its formulation export segment. While the company has achieved regulatory milestones, the substantial decline in profits and revenue has understandably concerned investors. Moving forward, the company’s strategies to address these challenges will be crucial for its financial health and investor confidence.
