Natco Pharma - Weak Q4; Set For Strong FY22: ICICI Securities
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ICICI Securities Report
Natco Pharma Ltd.’s Q4 FY21 performance was much lower than estimates with a miss in India and U.S. revenues.
Additionally, weak flu season impacted sales from Tamiflu.
Revenue declined 27.2% to Rs 3.3 billion while adjusted profit after tax dropped 43.7% to Rs 530 million (our estimate: Rs 1.0 billion).
Ebitda margin was also down 520 basis points YoY to 23.0% due to low revenue.
Continued pressure on domestic oncology segment and negligible Tamiflu sales in U.S. were key reasons for weak quarter.
However, this doesn’t change the FY22-FY23 outlook materially in terms of key product opportunities like Revlimid, Nexavar, Everolimus, etc.
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