StockWatch
·

NATURAL CAPSULES LTD. Q3 FY25 Results

NATCAPSUQQ3 FY25 Results
Filing
MetricValue ( Cr)vs Q2 FY25
Revenue43.836.3%
Total Income43.946.3%
Expenditure43.446.7%
PBT0.5018.5%
Net Profit0.11117.3%
OPM-7.94%0.51pp
NPM0.24%1.72pp
EPS0.10116.7%
View full financials

Natural Capsules Q3 & 9MFY25 Results: Modest Revenue Increase, Profitability Partially Offset

13 Feb 2025 · 13 Feb 2025, 03:50 am

Summary

Natural Capsules Limited, a leading manufacturer of hard capsules shell, has announced its financial results for the third quarter and nine-month ended December 31st, 2024. The company saw a modest increase in revenues, but the improvement in profitability was partially offset by a rise in gelatine prices and employee costs. The HPMC capsules business faced pricing pressure due to aggressive selling by Chinese players in US markets. The company plans to switch to product sizes with less pricing pressure. In the APl segment, the company has commenced commercial production of large-scale batches and aims to achieve a topline of I100 crores in the next financial year.

Key Highlights

  1. 1

    Modest increase in revenues for the quarter ended December 31st, 2024

  2. 2

    Slight increase in capsule realisation, but partially offset by a rise in gelatine prices

  3. 3

    Employee costs include provisioning for ESOPs, resulting in a decline in EBITDA

  4. 4

    HPMC capsules business faced pricing pressure due to aggressive selling by Chinese players in US markets

  5. 5

    Plan to switch to product sizes with less pricing pressure and streamline production in the APl segment

Management Comments

M

MR. SUNIL MUNDRA

EXECUTIVE DIRECTOR

The third quarter was stable for our capsules business, with a modest increase in revenues. While we saw a slight increase in capsule realisation as anticipated, a concurrent rise in gelatine prices partially offset the improvement in profitability. Additionally, employee costs this quarter includes provisioning for ESOPs, which has resulted in a decline in our EBITDA... Our focus for the next financial year will be to drive growth and restore higher profitability in the capsules business, while also ramping up capacities in the API segment, aiming for cash breakeven and securing the necessary regulatory approvals that will open up opportunities for higher-margin business... In conclusion, while the past few years have been challenging, we remain committed to delivering on our long-term strategies and achieving robust results.

Informational and educational content only. Not investment advice.