Divis Laboratories Ltd's Q3FY19 standalone net profit rises 68.92% yoy to Rs379.49cr : In-line with Estimates

The company’s standalone revenue stood at Rs1,342.92cr, up 29.39% yoy and 4.51% qoq.

Feb 04, 2019 03:02 IST India Infoline Research Team

Divis Laboratories Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 1,342.92 29.4
EBITDA 523.33 60.5
EBITDA Margin (%) 39 755
Net Profit (adjusted) 379.49 68.9
***EBITDA margin change is bps

Divi’s Laboratories’ revenue in Q3FY19 grew by 29.4% yoy to Rs1,343cr. EBITDA grew by 60.5% yoy to Rs523.3cr in Q3FY19 vs. Rs326.1cr in Q3FY18. EBITDA margins in Q3FY19 stood at 39% vs. 40% in Q2FY19 and 31.4% in Q3FY18. Aided by the strong margins and better operating leverage, PAT grew by 68.9% yoy to Rs379.5cr in Q3FY19.

Other highlights
  • Material cost as % of sales stood at 35.8% in Q3FY19 vs. 36.8% in Q2FY19 and 39.3% in Q3FY18. Gross margins stood at 64.2%, which are highest since Q2FY14.
  • Employee cost grew by 18.7% yoy but in % sales terms, it stood at 10.2% in Q3FY19, vs. 10.5% in Q2FY19 and 11.1% in Q3FY18.
  • Other expenses grew by 7.7% yoy in Q3FY19.
  • Other income was at Rs34.6cr during Q3FY19 vs. Rs80.1cr in Q2FY19. Forex loss during Q3FY19 was Rs41cr. vs. fx loss of Rs16cr in Q3FY18.

Technical View:

Divis Laboratories Ltd ended at Rs. 1,531.75, up by 26.55 points or 1.76% from its previous closing of Rs. 1,505.20 on the BSE.
The scrip opened at Rs. 1,509 and touched a high and low of Rs. 1,546 and Rs. 1,488.90 respectively. A total of 6,34,382 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.

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