Divi's Q2 net up 15.75% at Rs 296 crore

Firm's total income up 17.12% to Rs 994 cr; gross profit margin up by 5% to 38.95%

Hyderabad-based pharmaceutical company Divi's Laboratories Limited has reported a 15.75 per cent rise in net profit at Rs 295.73 crore for the quarter ended September 2015, on the back of higher revenues. The net profit for the corresponding previous quarter was Rs 229.64 crore.

Total income grew 17.12 per cent to Rs 993.96 crore in this quarter under review as compared with Rs 848.68 crore in the year ago period. The gross profit margin has gone up by over 5 per cent to 38.95 per cent from 33.31 per cent in the corresponding previous quarter. The total expenditure for the quarter stood at Rs 618.39 crore, an increase of 11.30 per cent over Rs 555.60 crore in the year ago period. It had a Forex gain of Rs 12 crore as compared to Rs 4 crore in the corresponding quarter last year.

The company, which manufactures active ingredients (APIs) and intermediates, said it has capitalised fixed assets aggregating to Rs 146 crore during the current half-year period. However, the investments into the new green field project are expected to begin in the second half.

"We have just got preliminary allotment of land for Kakinada. We are yet to pay for this. Hence, there is no investment in the greenfield project near Kakinada. The investment would start in the second half," L Kishore Babu, chief financial officer of Divi's Laboratories told Business Standard.

The capitalisation that the company did in the first half at the existing plants was meant for augmenting capacities and debottlenecking, he said.