Divis Labs falls 9% on weak operational performance in September quarter

Ebitda margin contracted by 180 basis points year-on-year to 41.5 per cent in Q2FY22 due to higher other expenses/employee costs.

Shares of Divi's Laboratories slipped 9 per cent to Rs 4,751 on the BSE in Monday's intra-day trade as the company's earnings before interest, tax, depreciation and amortization (ebitda) margin contracted by 180 basis points year-on-year (YoY) to 41.5 per cent in September quarter (Q2FY22) due to higher other expenses/employee costs.

The stock of the pharmaceutical company had hit a 52-week high of Rs 5,425 on October 18, 2021. In comparison, the S&P BSE Sensex was down 0.11 per cent at 60,002 points at 09:39 am.

In Q2FY22, Divi's Labs' profit after tax (PAT) grew by 17 per