Divis Laboratories declined 3.18% to Rs 2,382.10 as fourth quarter net profit was boosted by a surge in other income.
Consolidated 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 (Q4 FY20) over Q4 March 2019 (Q4 FY19).Other income surged 87.88% to Rs 76.73 crore in Q4 FY20 over Q4 FY19. It includes forex gain of Rs 57.10 crore in Q4 FY20. The firm reported forex loss of Rs 6.11 crore in Q4 FY19.
Consolidated profit before tax (PBT) soared 13.54% to Rs 470.96 crore in Q4 FY20 as against Rs 414.77 crore in Q4 FY19. Current tax expenses tanked 52.16% to Rs 53.88 crore in Q4 FY20 as against Rs 112.63 crore in Q4 FY19. 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).
The firm was reported in the previous financial year that it would take up two brownfield projects with an aggregate investment of Rs 1,200 crore. During the year, Divis Labs 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.
Divis Laboratories is the leading manufacturer of APIs (active pharmaceuticals ingredients), intermediates and registered starting materials offering high quality products with the highest level of compliance and integrity to over 95 countries.
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