Natco Pharma is expecting to clock over Rs. 1000 crore annual profit in the current financial year, 2023-24, according to its Chief Executive Officer, Rajeev Nannapaneni.
“I want to say we’ll go past Rs. 1,000 crore. But how much more than Rs. 1,000 crore, depends on how the market plays out. So that’s a little difficult to guess. I think Rs. 1,000 crore to Rs 1,200 crore range is my expectation,’‘ he said in the first quarter earnings call.
The Hyderabad-based company is also expecting its newly-started agro chemicals division to register further growth this year. It is targeting a revenue of Rs. 50 crore to Rs. 200 crore in the current financial year. “The season just started. I would say we have gone from Rs. 1 crore s to Rs. 45 crore. It’s a fairly good run.’‘ Nannapaneni said.
Natco is currently running promotional advertisements in Telangana for its agri products and also plans to take up a similar campaign in Maharashtra soon.
“We are filing our agro portfolio outside India. So the export business might take two to three years from now. But overall, I think my expectation is that the business should grow to around Rs. 400 crore to Rs. 500 crore in the next three to four years. And it will be a good solid business and contributing solidly for our both bottom line and top line,’‘ the CEO said.
Natco is also witnessing organic business growth in Chlorantraniliprole (CTPR) in the domestic market is doing registration outside India as well. It had already filed the product in Brazil.
Natco Pharma’s consolidated net profit increased 31 per cent to Rs. 420 crore in the first quarter ended June 30, 2023 against Rs. 320 crore in the corresponding quarter of the previous financial year on 26.3 per cent growth in total revenue at Rs. 1,160 crore. Major drivers of business during the quarter were from formulation exports, strong growth in domestic business of both pharma and agro, and steady sales from subsidiaries.