Divi’s Lab's stock price down ~12% on disappointing Q3 result

3 Feb 2023 , 03:21 AM

Divi’s Laboratories’ shares slipped as much as 12% to touch a new 52-week low of Rs2,795 in Friday’s trading session following the company’s Q3 earnings release.

Divi’s Labs’ net profit fell 66% to Rs307 crore in the third quarter, compared to Rs902 crore the in the same quarter of the previous year.

Company reported a 31% yoy decline in its revenue at Rs1,707 crore for the quarter ended December 2022, against Rs2,493 crore in the previous corresponding year.

The company reported an EBITDA (earnings before interest, tax, depreciation, and amortization) of Rs408 crore, a decrease of nearly 63% from Rs1,097 crore in the previous year’s same period. Margins fell to 23.9% in the third quarter as well.

Profit for the nine-month period ended December fell 27% to Rs1,502 crore, compared to Rs2,066 crore in the same period last year.

Total income for the nine-month period was Rs6,099 crore, compared to Rs6,503 crore in the previous year’s corresponding period. The company reported a standalone profit after tax of Rs311 crore, registering a decline of more than 60%.

Profit and margins were lower than expected, while revenue was in line with market expectations.

At around 3.19 PM, Divi’s Laboratories was trading 11.65% lower at Rs2,886.35 per piece, against its previous close of Rs3,267 on NSE.

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