Natco Pharma's Q4 FY25 earnings conference call, hosted by B&K Securities, featured Mr. Rajeev Nannapaneni, Vice Chairman and CEO, and Mr. Rajesh Chebiyam, Executive Vice President, Crop Health Sciences.
NATCO recorded a consolidated total revenue of ₹4,784 crore for the year ended on 31st March 2025, a growth of roughly 16% compared to ₹4,126.9 crore in the previous year. Net profit for the year was ₹1,883.4 crore, a 36% increase from ₹1,388.3 crore last year.
For Q4 FY25, net revenue was ₹1,287.3 crore compared to ₹1,110.3 crore in Q4 FY24. Profit for the quarter was ₹406 crore versus ₹386.3 crore in the same period last year.
The company recorded its highest-ever consolidated revenue and profits during the financial year.
During the quarter, the company took an impairment charge of ₹50 crore in the Crop Health Science business and a chargeback adjustment of roughly ₹25 crore in its U.S. subsidiary, along with higher R&D expenses.
As of today, the company has a cash position of over ₹3,500 crore.
The company estimates a possible dip in revenue by 20% and profits by 30% due to geopolitical uncertainties and pricing pressure in its core product portfolio in the U.S. and increased R&D expenses.
Risdiplam litigation is expected to be reserved for order by the end of June 2025, with a potential product launch immediately if the order is in Natco's favor.
Trial is ongoing for NRC-2694, a late-stage cancer treatment, with potential clarity on its progress in about 1 to 1.5 years.
The company spent ₹373 crore (8.5% of standalone revenue) on R&D for FY25 and aims to spend up to ₹400 crore in FY26.
Semaglutide launch is expected by the end of the financial year in India.
Management anticipates the India business to grow, driven by Risdiplam (subject to court decision) and Semaglutide launches.
Natco is actively pursuing acquisitions and is positive about closing a deal in FY26.
Rajeev Nannapaneni commented that company is saving all the money for the acquisition.