Divi’s Laboratories reported a 45.6percent growth in net profit Y-o-Y and rests at Rs 519.6 crores during the September quarter. The revenue saw a growth of 21percent Y-O-Y and rested at Rs 174.3 crores. The margin rose by 42.4percent i.e by 850 basis points Y-o-Y.
The biggest driving factors behind the double-digit growth during the second quarter were the improved demand for Active Pharmaceutical Ingredient (API) products while the expansion capacity also helped the cause.
“We expect Divi’s Lab to continue its growth streak with top-line growth expected at 15 percent Y-o-Y, however, declined 4 per cent Q-o-Q on-demand normalisation. Gross margin is likely to improve 300bps YoY to 62 per cent on favourable base, however, remain stable QoQ,” analysts at Edelweiss Research had predicted before the release of accurate figures on Saturday.
The drugmakers had reported an 80.61 percent increase in the consolidated net profit at Rs 492.06 crore for the June quarter, mainly due to robust sales. While in the September quarter last year, its profit rested at Rs 356.78 crore.
Divi’s Labs has been one of the most brilliantly performing pharma companies in 2020 as far as the market returns are concerned. It has rallied nearly 74 percent year to date while its one-year returns stand at around 90 percent.
