Novartis India Limited , a prominent player in the pharmaceutical sector, has released its financial results for the first quarter, showcasing a mixed performance. The company also announced the appointment of new cost auditors for the upcoming financial year.

Financial Performance

Novartis India reported a revenue from operations of ₹875.50 crore for the quarter. This figure represents a slight decline of 5.1% compared to ₹922.90 crore in the same quarter of the previous year. However, it shows a modest increase of 4.4% from the ₹838.80 crore reported in the preceding quarter.

Despite the marginal dip in revenue, the company's profitability saw an improvement. The profit for the period stood at ₹276.20 crore, marking a 7.3% increase from ₹257.40 crore in the corresponding quarter last year. However, it's worth noting that this figure is slightly lower than the ₹293.00 crore profit reported in the previous quarter.

The company's earnings per share (EPS) for the quarter was reported at ₹11.19.

Key Financial Metrics

Appointment of Cost Auditors

In a significant corporate development, Novartis India's Board of Directors has approved the appointment of M/s. D.C. Dave & Co. as the company's Cost Auditors for the upcoming fiscal year. The firm, with registration number 000611, is recognized as a leading practice of Cost Accountants with extensive experience in cost audit, compliance, assurance, and consulting services.

The Board has set the remuneration for the Cost Auditors at ₹1.50 lakh, plus applicable taxes. This appointment and the proposed remuneration are subject to ratification by the shareholders through a postal ballot.

Postal Ballot Notice

The company's Board has also approved a draft notice for a postal ballot to seek shareholders' approval on the ratification of the remuneration payable to the newly appointed Cost Auditors. This move is in compliance with Section 148 of the Companies Act, 2013.

Segment Information

Novartis India continues to operate in a single business segment, focusing solely on pharmaceuticals. This strategic focus allows the company to leverage its expertise and resources in the pharmaceutical domain.

The financial results, approved by the Board of Directors, have been subject to a limited review by the company's statutory auditors. As Novartis India navigates through the evolving pharmaceutical landscape, stakeholders will be keenly watching how these financial results and corporate decisions shape the company's future trajectory.

Novartis India Limited has released its fourth-quarter financial results, showcasing significant improvements across key financial metrics. The pharmaceutical giant has also announced a substantial dividend for its shareholders.

Financial Highlights

Novartis India demonstrated strong financial performance in Q4, with notable year-over-year improvements:

The company's revenue saw a modest increase of 3.36% year-over-year, rising to ₹839.00 crore from ₹811.70 crore in the previous year's corresponding quarter.

Profitability Surge

Novartis India's profitability metrics showed remarkable improvement:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) more than doubled to ₹239.00 crore, up from ₹112.10 crore in the same quarter last year, representing a substantial 113.20% increase.
• The EBITDA margin expanded significantly to 28.49%, compared to 13.81% in the previous year, indicating enhanced operational efficiency.
• Net profit saw an impressive growth of 99.59%, reaching ₹293.00 crore, up from ₹146.80 crore in the year-ago period.

Dividend Announcement

In a move that is likely to please shareholders, Novartis India's board has recommended a dividend of ₹25.00 per equity share. This announcement comes as a positive signal, reflecting the company's strong financial position and commitment to delivering value to its investors.

Conclusion

Novartis India's Q4 results demonstrate the company's ability to enhance profitability despite modest revenue growth. The significant improvements in EBITDA and net profit, coupled with the generous dividend declaration, underscore the company's financial strength and operational efficiency. As Novartis India continues to navigate the dynamic pharmaceutical landscape, these results position the company favorably for future growth and shareholder value creation.