Natco Pharma Shares Rise Over 2% Post Q2 Results: Profit Soars 83%, Revenue Up 33% YoY

Natco Pharma announced its second-quarter results on November 12, 2024, showing strong growth in both revenue and profit. The company’s revenue increased by 32.94% compared to the same period last year, while net profit surged by 83.55%. On a quarter-over-quarter basis, revenue grew slightly by 0.62%, and profit rose by 1.32%.

Rising Expenses Due to Strategic Investments

Despite positive gains in revenue and profit, Natco Pharma saw a rise in its selling, general, and administrative (SG&A) expenses. These expenses increased by 6.69% from the previous quarter and by 23.77% compared to the same period last year, driven by the company’s investments in marketing and expanding operations to strengthen its market presence.

Operating Income and Earnings Per Share

While operating income showed a minor dip of 0.29% from the last quarter, it recorded a robust year-over-year increase of 83.04%. The earnings per share (EPS) for Q2 reached ₹37.81, an 83.54% jump from the previous year.

Stock Performance and Market Cap

In the past week, Natco Pharma’s stock fell by 2.19%. However, the company has achieved a strong return of 40.5% over the last 6 months and an impressive 71.42% year-to-date. Natco Pharma’s current market capitalisation stands at ₹24,911.5 crore, with a 52-week high of ₹1,639 and a low of ₹752.45.

About NATCO Pharma Limited

NATCO Pharma Limited (NATCO) is a pharmaceutical company with a strong focus on research and development. It is vertically integrated, meaning it oversees various stages of its operations, from product creation to market distribution. NATCO specialises in developing, producing, and selling complex medications aimed at specific therapeutic areas. The company operates in three key areas: finished dosage formulations (FDF), active pharmaceutical ingredients (APIs), and contract manufacturing.

On November 13, 2024, Natco Pharma share price opened at ₹1,397.00, touching the day’s high of ₹1,433.15, reflecting a rise of 2.34% as of 12:20 PM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.