{"id":127644,"date":"2022-02-17T08:23:21","date_gmt":"2022-02-17T13:23:21","guid":{"rendered":"https:\/\/44.250.171.167\/?p=127644"},"modified":"2022-10-05T06:09:11","modified_gmt":"2022-10-05T10:09:11","slug":"natco-pharma-limited-q3-fy22-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/natco-pharma-limited-q3-fy22-earnings-conference-call-insights\/","title":{"rendered":"NATCO Pharma Limited Q3 FY22 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"Natco Pharma Ltd Q3 FY22 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/bt9cDow2-2c?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from NATCO Pharma Limited (<a href=\"https:\/\/44.250.171.167\/symbol\/NATCOPHARM\/\">NATCOPHARM<\/a>) Q3 FY22 Earnings Concall<\/strong><\/p>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Tarang Agrawal from Old Bridge asked about the thought process behind Dash acquisition. Rajeev Nannapaneni CEO said that for the plain vanilla generics the company wants to do its own front end and for complex generics the company wants to continue to do partnerships. Therefore, Dash came at a reasonable valuation and as the business is more difficult, it\u2019s better to keep most of the economics with the company as opposed to sharing.<\/li>\n<\/ul>\n<ul>\n<li>Tarang Agrawal from Old Bridge enquired about revenue and EBITDA ex the product licensing income, which is a one-off. Rajeev Nannapaneni CEO replied that licensing income covers most of the expense. The run rate of revenue is similar to what it was last quarter. The difference is from licensing income, which is due to a partner who gave the company a reimbursement of certain expenses.<\/li>\n<\/ul>\n<ul>\n<li>Ahmed Madha with Unifi Capital asked about the competitive scenario in Canada for Revlimid, considering market share gains and the price erosion. Rajeev Nannapaneni CEO said the price erosion has been quite anticipated and has been fairly comparative. There is some margin. Overall the company is happy with Revlimid performance in Canada.<\/li>\n<\/ul>\n<ul>\n<li>Ahmed Madha with Unifi Capital also asked about the sequential jump seen in the export formulation business from INR190 crore to INR380 crore. Rajeev Nannapaneni CEO replied that it\u2019s partly due to the one-off licensing income.<\/li>\n<\/ul>\n<ul>\n<li>Danesh Mistry asked that when does the company see uptick in the domestic business. Rajeev Nannapaneni CEO said that in domestic the company started the year nicely, especially June quarter, as there was the benefit of the COVID portfolio. The benefit of COVID was not there in subsequent quarters. Without COVID, the run rate is about INR100 crore a quarter.<\/li>\n<\/ul>\n<ul>\n<li>Danesh Mistry asked that in the Agrichem business why the company had a INR10 crore EBIT loss. Rajeev Nannapaneni CEO commented that the company is losing money in agro and consistently losing INR10-12 crores a quarter. The reason being the launches anticipated by the company didn\u2019t happen. The company anticipates it won\u2019t get better.<\/li>\n<\/ul>\n<ul>\n<li>Danesh Mistry asked the reason for other expenses jumping from INR88 crore to about INR247 crores in 3Q22. Rajeev Nannapaneni CEO said that it is related with the ANDA expenditure. The general expenses are in the INR100 crore per quarter region.<\/li>\n<\/ul>\n<ul>\n<li>Kunal Randeria from Edelweiss enquired about the challenges in growing oncology business. Rajeev Nannapaneni CEO said it\u2019s pricing. In oncology, the discounts are very high, there&#8217;s a gross price and a net price. Losing a few accounts creates a dramatic decrease of sales. It\u2019s a structural issue and competition is the biggest reason for growth. The company\u2019s portfolio being a niche portfolio is seeing more pressure.<\/li>\n<\/ul>\n<ul>\n<li>Kunal Randeria from Edelweiss enquired if Revlimid profit share would come in 4Q22 or 1Q23. Rajeev Nannapaneni CEO answered that the launch is in 4Q22. So hopefully there will be some profit share in March. And thereafter, every quarter there will be profit share, which will become a significant part of earnings.<\/li>\n<\/ul>\n<ul>\n<li>Ritika Agarwal from Value Quest asked if the company has filed any FTFs. Rajeev Nannapaneni CEO replied that the company so far has filed two FTFs. It\u2019s a competitive market and even though the company filed, five other people have filed on the same day.<\/li>\n<\/ul>\n<ul>\n<li>Nitin Agarwal from DAM Capital asked about any progress on the company\u2019s China initiatives. Rajeev Nannapaneni CEO said the company is not having front end in China and the company is all doing partnership. The company has filed about 4 or 5 products. There&#8217;s not been a single approval, but expecting just a couple of approvals this year. But as of now, we don&#8217;t have any approvals.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from NATCO Pharma Limited (NATCOPHARM) Q3 FY22 Earnings Concall Q&amp;A Highlights: Tarang Agrawal from Old Bridge asked about the thought process behind Dash acquisition. Rajeev Nannapaneni CEO said that for the plain vanilla generics the company wants to do its own front end and for complex generics the company wants to continue to [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392],"tags":[1115],"class_list":["post-127644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","tag-pharmaceuticals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":141125,"url":"https:\/\/alphastreet.com\/india\/natco-pharma-limited-natcopharm-q3-fy23-earnings-concall-transcript\/","url_meta":{"origin":127644,"position":0},"title":"NATCO Pharma Limited (NATCOPHARM) Q3 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"February 12, 2023","format":false,"excerpt":"NATCO Pharma Limited (NSE:NATCOPHARM) Q3 FY23 Earnings Concall dated Feb. 10, 2023. Corporate Participants: Rajesh Chebiyam\u00a0--\u00a0Executive Vice President of Crop Health Science Rajeev Nannapaneni\u00a0--\u00a0Chief Executive Officer Analysts: Kunal Randeria\u00a0--\u00a0Director of Research, Nuvama Wealth Management Ltd. Tarang Agarwal\u00a0--\u00a0Old Bridge Capital Management -- Analyst Chetan Doshi\u00a0--\u00a0Tulsi Capital -- Analyst Nitin Agarwal\u00a0--\u00a0DAM Capital\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":142511,"url":"https:\/\/alphastreet.com\/india\/natco-pharma-limited-q3fy23-earnings\/","url_meta":{"origin":127644,"position":1},"title":"NATCO Pharma Limited Q3FY23 Earnings","author":"Karan_Singh","date":"February 22, 2023","format":false,"excerpt":"A pharmaceutical firm with a strong focus on research and development, NATCO Pharma Ltd creates, produces, and markets sophisticated pharmaceuticals for specialised therapeutic markets. NATCO has created a foothold in all three business sectors, namely contract manufacturing, active pharmaceutical ingredients, and completed dosage formulations. Financial Results: The company reported a\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/nutritional-supplement-2358477_1280-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/nutritional-supplement-2358477_1280-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/nutritional-supplement-2358477_1280-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/nutritional-supplement-2358477_1280-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/nutritional-supplement-2358477_1280-1.jpg?resize=1050%2C600&ssl=1 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dated Feb. 13, 2025 Corporate Participants: Rajeev Nannapaneni \u2014 Vice Chairman and Chief Executive Officer Analysts: Hrishikesh Patole \u2014 Analyst Saumil Shah \u2014 Analyst Arun Malhotra \u2014 Analyst Unidentified Participant Viraj Mahadevia \u2014 Analyst Prashant Nair \u2014 Analyst Hrishit Jhaveri \u2014\u2026","rel":"","context":"In &quot;Earnings Call Transcripts&quot;","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=525%2C300&ssl=1 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