Divi's Laboratories Q3 net up 91.71% yoy at Rs902.24cr on improved OPMs in the core API business

Divi's Laboratories reported 46.54% yoy rise in total sales revenues for the Dec-21 quarter on consolidated basis at Rs2,493cr

February 12, 2022 11:46 IST | India Infoline News Service
Divi's Laboratories reported 46.54% yoy rise in total sales revenues for the Dec-21 quarter on consolidated basis at Rs2,493cr. On a sequential basis, the revenues were up by 25.45%.

During the December 2021 quarter, the Hyderabad based Divi’s Laboratories saw good traction across all its segments from the global markets. Divi’s Laboratories is into the manufacture of active pharmaceutical ingredients (APIs), intermediates and nutraceutical ingredients.

Its global businesses are conducted via its global subsidiaries based out of the US and Europe. Despite the pressure on generic API markets globally, the specialized APIs business of Divi’s Laboratories continues to do extremely well. More than 85% of its total business flows come from the export market.

For the Dec-21 quarter, the operating profits were up 63.28% at Rs1,017cr. Even on a sequential basis, the operating profits were up by 37.34% showing strong revival momentum in sync with the revival in pharma demand globally.

The solid operating performance can be attributed to the efficient cost controls at the company. The cost of materials on a yoy basis was up by 32% and that gap with the growth in sales revenues ensured better price realization and operating profit margins for Divi’s Laboratories.

Operating margins for the company improved from 36.62% in Dec-20 quarter to 40.80% in the Dec-21 quarter on operating and inventory efficiency. The operating margins were also higher by 453 basis points on a sequential basis.

Net Profit after tax (PAT) for the Dec-21 quarter was up 91.71% yoy at Rs902.24cr on the back of a stellar operating costs in the quarter getting transmitted to the bottom line. The company already enjoys substantial financial comfort due to low levels of debt resulting in limited outflows in the form of finance charges.

PAT margins improved sharply from 27.66% in the Dec-20 quarter to 36.19% in the Dec-21 quarter. The PAT margins were also higher on a sequential basis by 568 basis points.

Financial highlights for Dec-21 compared yoy and sequentially

Divi's Laboratories
Rs in Crore Dec-21 Dec-20 YOY Sep-21 QOQ
Total Income (Rs cr) ₹ 2,493.24 ₹ 1,701.44 46.54% ₹ 1,987.51 25.45%
Operating Profit (Rs cr) ₹ 1,017.27 ₹ 623.03 63.28% ₹ 740.72 37.34%
Net Profit (Rs cr) ₹ 902.24 ₹ 470.62 91.71% ₹ 606.46 48.77%
Diluted EPS (Rs) ₹ 33.99 ₹ 17.73 ₹ 22.84
Operating Margins 40.80% 36.62% 37.27%
Net Margins 36.19% 27.66% 30.51%

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