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Divis Labs hits record high after strong Q2 performance

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Capital Market
Last Updated : Nov 09 2020 | 12:16 PM IST

Divis Laboratories jumped 6.50% to Rs 3448.20 after the company reported 45.6% jump in consolidated net profit to Rs 519.59 crore on a 21% increase in net sales to Rs 1,749.30 crore in Q2 FY21 over Q2 FY20.

The scrip surged 6.92% to hit the day's high at Rs 3461.80, which is also a record high for the counter. On the BSE, 1.17 lakh shares were traded in the counter so far, a 4.04 times surge over two-week average daily volumes of 28,558 shares.

"The company has been able to have near normal operations during the quarter," Divis Labs said in a statement.

Profit before tax in Q2 September 2020 stood at Rs 693.49 crore, up by 42.1% from Rs 487.87 crore in Q2 September 2019. Total tax expense rose by 32.7% year-on-year (YoY) to Rs 173.90 crore during the quarter.

For the current quarter, the company has incurred a forex loss of Rs 16 crore as against a gain of Rs 13 crore during the corresponding quarter of last year.

With respect to its capex programs, Divis Labs said: "We have capitalized assets of Rs 615 crore during the quarter and the total capitalization done during the half-year amounted to Rs 830 crore. We expect to complete the ongoing capex programs by end of the financial year.

Apart from the existing capex programs, the company is taking up a new capex for an aggregate amount of Rs 400 crore for meeting new business opportunities in the custom synthesis projects; and needed to be completed on fast track."

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Divis Laboratories is a manufacturer of APIs (active pharmaceuticals ingredients), intermediates and registered starting materials offering high quality products to over 95 countries.

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First Published: Nov 09 2020 | 11:29 AM IST

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