Natco Pharma shares fall over 6% after weak Q1 results; Board approves fund raise of up to ₹2,000 crore

Natco Pharma shares fall over 6% after weak Q1 results; Board approves fund raise of up to ₹2,000 crore


Shares of Natco Pharma fell sharply on Friday, August 14, after the company reported a weak set of earnings in the June quarter. The company’s earnings declined across all key parameters — profit, revenue, EBITDA and margin.

Its profit came in at ₹206.5 crore in the first quarter, down 57% from the previous year’s ₹480.7 crore.

its revenue declined 44.7% to ₹735.2 crore from ₹1,328.9 crore in the June quarter last year.

The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) declined 67.3% in the first quarter to ₹186.5 crore from ₹571 crore in the prior fiscal.

Its margins also contracted sharply to 25.4% from 43% in the year-ago period.

Natco Pharma’s board of directors also approved the fund raise of up to ₹2,000 crore via issuance of shares, securities.

Shares of Natco Pharma were down 6.4% at ₹890.65 apiece at 2.20 pm on Friday. The stock has fallen 8% in the past month but is up 0.5% this year, so far.

Also Read: Bharat Dynamics Q1 Results: Profit jumps multi-fold, revenue more than doubles



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