Divi’s Laboratories Reports 17% YoY Rise in Quarterly Profit
Pharma major Divi’s Laboratories has released its financial results for the October-December quarter of the current fiscal year, revealing a notable 17 percent year-on-year (YoY) increase in its consolidated net profit. The company reported a consolidated net profit of Rs 358 crore for the quarter, compared to Rs 306 crore in the same period last year.
The revenue for the quarter stood at Rs 1,855 crore, marking an 8.6 percent growth from the year-ago quarter’s figure of Rs 1,708 crore. While the increase in profit and revenue is a positive sign, the operational performance of the company was weaker than expected.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at Rs 479 crore for the quarter, up approximately 19.6 percent from Rs 409 crore in the corresponding period last year. However, despite the increase in EBITDA, the EBITDA margin saw a modest improvement, rising to 26.4 percent from 24 percent in the base period.
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One notable aspect of the financials was the decline in forex gain for the current nine-month period, which accounted for Rs 32 crore compared to Rs 134 crore during the previous nine-month period.
In terms of governance and leadership changes, the company’s board has approved the reappointment of Sunaina Singh as an Independent Director for a second term of five years, effective from March 28, 2024. Additionally, the board has appointed Devendra Rao as an Additional Director designated as ‘Whole-time Director (Manufacturing)’ for a term of five years starting from February 10.
Following the announcement, shares of Divi’s Laboratories closed 0.9 percent higher at Rs 3,651 apiece on the Bombay Stock Exchange (BSE) on Friday. This performance outpaced the benchmark Sensex, which saw a marginal 0.23 percent rise.
Divi’s Laboratories specializes in the manufacture of Active Pharmaceutical Ingredients (APIs), Intermediates, and Nutraceutical Ingredients. The company’s contribution to the pharmaceutical industry’s supply chain is significant, with a focus on delivering high-quality products and maintaining operational excellence.
