Natco Pharma rallies on strong Q4FY15 results

MUMBAI: Shares of midcap Natco Pharma surged over 4 per cent in early trade on the back of strong results for quarter ended March 2015. The company’s net profit surged 126.66 per cent in Jan-March quarter to Rs 54.4 crore as compared to a net profit of Rs 24 crore in the corresponding quarter last fiscal. The net profit includes tax reversals of Rs 31 crore.

Consolidated sales during Jan-March quarter rose to Rs 191 crore, up 9.1 per cent, against Rs 175 crore, in the same quarter last fiscal.

Margins for the quarter increased to 25.6 per cent vs 21.1 per cent.

Revenues from formulation grew at 9 per cent while bulk chemicals revenues grew at 65 per cent.

The Company Board has approved proposal to raise up to Rs 450 crore through shares sale to institutional investors. The funds will be utilized for capex and acquire technologies for future drug launches.

It has also approved merger of Natco Organics, a 100 per cent subsidiary, into Natco Pharma.

Natco Pharma will be launching generic versions of copaxone, tamiflu and revlimid in couple of years.