Divis Laboratories

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Divi's Laboratories on Monday said its consolidated net profit declined by 18 per cent to Rs 494 crore in the second quarter of the current financial year. The drug firm had reported a net profit of Rs 606 crore in the July-September period of last fiscal. Revenue from operations declined to Rs 1,854 crore in the September quarter as against Rs 1,987 crore in the year-ago period. Shares of the company on Monday ended 8.63 per cent at Rs 3,422 apiece on the BSE.

The company has earmarked an aggressive capex of around Rs 2,000 crore over next two years in order to take a chunk of around $20 billion opportunity of APIs going off-patent over FY23-25.

Ebitda margin contracted by 180 basis points year-on-year to 41.5 per cent in Q2FY22 due to higher other expenses/employee costs.

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The board has recommended a dividend of Rs 20 (i.e. 1,000 per cent) per equity share of face value Rs 2 each for the financial year 2020-21

Currently, Divis Labs stands at the 30th position among companies having market-cap of over Rs 1 trillion.

Q2FY21 EBITDA margins expanded 843 bps YoY to 42.4 per cent due to significantly better gross margin performance and lower other expenditure.

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In the past month, Divi's Lab has outperformed the market by surging 10 per cent, as compared to 1.4 per cent decline in the S&P BSE Sensex

Stock calls by Jay Anand Thakkar, CMT -Assistant Vice President - Equity Research, Anand Rathi Shares and Stock Brokers

Operational revenue during the quarter grew 17 per cent YoY at Rs 1,163 crore against Rs 995 crore in the corresponding quarter of previous year

Strong demand for active ingredients is further accentuated by shortages even as prospects in custom synthesis business remain firm

Divis Labs had reported a net profit of Rs 397.65 crore on total revenue of Rs 1,365 crore in the quarter ended September 2018

The company said it would be investing Rs 6 billion each on its Unit-2 at the Vizag SEZ in Andhra and Unit-1 of its Nalgonda SEZ in Telangana

Thus far in the current month, Divi's Labs outperformed the market by gaining 23% after the company on November 2, said that the USFDA will lift import alert for its Visakhapatnam unit.

BS ReporterHyderabad, 20 September: Hyderabad-based Divis Laboratories Limited on Wednesday said Unit 2 in Visakhapatnam, which has been under import alert for the past six months, has resolved all the previous observations of the US Food and Drug Administration(USFDA) in a latest full cGMP verification conducted by the inspection teamThe successful implementation of post-audit corrective plan as indicated by the company will pave the way for lifting of import alert issued under clause 66-40 related to manufacturing side issues. Responding to the news, the company scrip rose as much as 8.13 percent or by Rs 70 at Rs 934 in the afternoon trade on Bombay Stock Exchange.While clearing the plant level issues related to the previous set of observations, the USFDA team has issued a Form 483 with a set of 6 fresh observation following during its audit conducted from September 11-19. Without giving any specific details, Divis management stated that the new set of observations were of ...

Company, however, did not provide details of the warning letter