Natco Pharma Shares Surge Following Impressive Q2 Results and Dividend Announcement

Natco Pharma Shares Surge Following Impressive Q2 Results and Dividend Announcement

VoM News Desk | November 15, 2023 | 12:14 PM IST | Breaking News | Follow on Google News

Natco Pharma Shares Surge Following Impressive Q2 Results and Dividend Announcement

Natco Pharma Shares Surge Following Impressive Q2 Results and Dividend Announcement

Natco Pharma’s share price experienced a substantial increase, opening over 9% higher on Wednesday on the Bombay Stock Exchange (BSE). This surge followed the company’s announcement of a significant rise in net profit for the second quarter of the financial year 2024 (FY24), along with a dividend declaration for its shareholders.

Key Financial Highlights for Q2 FY24

• Natco Pharma reported a net profit of ₹369 crore for the quarter ending September 2023, marking a dramatic 550% increase from ₹56.8 crore in the same period last year.
• Total sales for Q2 FY24 more than doubled to ₹1,060.8 crore from ₹452.6 crore year-on-year (YoY).
• The company attributed this strong performance to growth in formulation exports and increased sales in the domestic agrochemical business.

Segment-Wise Revenue Growth

• Active Pharmaceutical Ingredient (API) segment revenue rose to ₹77.8 crore, up from ₹44.1 crore in the year-ago quarter.
• Revenue from formulations segment exports jumped to ₹792.3 crore from ₹283.4 crore, YoY.
• Domestic formulations business revenue grew to ₹102.5 crore from ₹93.5 crore, YoY.
• Crop Health Sciences business revenue surged to ₹55.8 crore from ₹3 crore in the same quarter of the previous fiscal year.
• Other Operating income & non-operating income also increased to ₹32.4 crore from ₹28.6 crore, YoY.

Dividend Declaration and Payment Details

• The Board of Directors of Natco Pharma declared a second interim dividend of ₹1.25 per equity share of ₹2 each for FY24.
• The record date for determining eligible shareholders for the dividend is set as Friday, November 24, 2023.
• The payment of the interim dividend is scheduled to start from December 1, 2023.

Stock Performance Overview

Despite a decline of over 6% in one month, Natco Pharma’s stock has seen a year-to-date (YTD) increase of more than 41%. Following the announcement, the shares were trading 3.80% higher at ₹823.95 apiece on the BSE as of 9:20 am.

The company’s robust financial performance and positive outlook have evidently boosted investor confidence, reflecting in the significant rise in its share price.

VoM News Desk

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