On a consolidated basis, Divis Laboratories' net profit jumped 32.96% to Rs 388.23 crore on 9.67% increase in revenue from operations to Rs 1,389.71 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax (PBT) soared 13.54% to Rs 470.96 crore in Q4 March 2020 as against Rs 414.77 crore in Q4 March 2019. Current tax expenses tanked 52.16% to Rs 53.88 crore in Q4 March 2020 as against Rs 112.63 crore in Q4 March 2019. The Q4 earnings were announced on Saturday, 6 June 2020.
Divis Laboratories has undergone 4 regulatory inspections/audits during FY20 at both its manufacturing plants. Three were conducted by the United States Food & Drug Administration (USFDA) and one was undertaken by European Directorate, European Medicines Agency (EMA).
It was reported in the previous financial year that the pharmaceutical major would be taking up two brownfield projects with an aggregate investment of Rs 1,200 crore. During the year, Divis Laboratories has capitalized assets worth Rs 876 crore for the new projects as well as for expansion at the existing facilities; and an amount of Rs 920 crore is carried forward as Capital Work-in-Progress at the end of the year. The company commenced commercial production partially during February 2020 from DC-SEZ unit. It has also commenced commercial production partially during March 2020 from DCV-SEZ unit.
Besides the brownfield projects, Divis Laboratories has taken up debottlenecking & backward integration programs at Unit-I and Unit-II facilities by investing an aggregate amount of Rs 300 crore. In addition, a project for augmentation of effluent treatment infrastructure at Unit-II facility has been taken up at an estimated cost of Rs 190 crore. However, there has been some delay in implementing the large capex projects taken by the company due to torrential rains and COVID-19 which impacted movement of people and goods.
Shares of Divis Laboratories gained 1.64% to Rs 2,460.45 on Friday, 5 June 2020. The stock is up 7.75% in a month.
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