Divi’s Unit-1 in Telangana, which had been inspected by the US FDA in November, has not seen any observations from the drug regulator indicating that there are no regulatory hurdles for the company. Meanwhile, the company’s business continues growing at a healthy pace, as was evident from September quarter’s 12 per cent year-on-year growth (24 per cent sequential growth) in revenues. Not only did the CRAMS and generics business clocked 10 per cent year-on-year growth, but there was a sharp pick-up in the new carotenoids segment, which saw revenues growing 40 per cent year-on-year. Divi’s has maintained the 10 per cent growth guidance for FY20 in constant currency terms.
The company has continued spending on expanding and debottlenecking its existing capacities, at a time when its new project at Kakinada has been delayed. The aggressive capex of Rs 1,700 crore will help tap larger opportunities arising out of CRAMS and also to capitalise on the ones arising due to supply disruptions from China. Analysts say, these expansions underpin the long-term growth outlook for Divi’s.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in