Natco Pharma, a leading Indian pharmaceutical company, has reported a decline in its net profit for the second quarter (Q2) of the current financial year. The company’s net profit stood at Rs 517.9 crore, which represents a decline of 23.44% compared to the same period last year.
The decline in net profit can be attributed to various factors, including a decrease in revenue and an increase in expenses. The company’s revenue from operations declined by 14.5% to Rs 1,217.5 crore during the quarter, compared to Rs 1,422.5 crore in the same period last year.
The decline in revenue was primarily due to a decrease in sales of certain key products, including those related to the treatment of cancer and hepatitis. Additionally, the company’s exports to the US market were also affected due to increased competition and regulatory issues.
Despite the decline in revenue, the company’s operating expenses increased by 10.5% to Rs 632.1 crore during the quarter, primarily due to higher research and development (R&D) expenses and selling and distribution expenses.
The company’s R&D expenses increased by 25.5% to Rs 143.1 crore during the quarter, as it continued to invest in new product development and clinical trials. The company’s selling and distribution expenses also increased by 12.1% to Rs 245.5 crore, primarily due to higher marketing and promotional expenses.
The decline in net profit has been a concern for the company, and it is taking steps to improve its performance. The company is focusing on launching new products, expanding its presence in emerging markets, and improving its operational efficiency.
In a statement, the company’s management said that it is confident of returning to growth in the coming quarters, driven by the launch of new products and an improvement in sales of its existing products. The company is also focusing on reducing its costs and improving its profitability.
Overall, while the decline in net profit is a concern, the company’s management is optimistic about its future prospects and is taking steps to improve its performance. The company’s focus on new product development, expansion into emerging markets, and operational efficiency is expected to drive growth in the coming quarters.