Divi's Labs drops on dismal Q1 results

Divi's Laboratories dropped 4.32% to Rs 689.70 at 10:00 IST on BSE after net profit dropped 41.51% to Rs 176.54 crore on 17.67% fall in total revenue from operations to Rs 850.88 crore in Q1 June 2017 over Q1 June 2016.

The result was announced on Saturday, 22 July 2017.

Meanwhile, the S&P BSE Sensex was up 144.53 points, or 0.47% to 32,179.92.

On the BSE, 1.05 lakh shares were traded in the counter so far, compared with average daily volumes of 2.49 lakh shares in the past one quarter. The stock had hit a high of Rs 699.75 and a low of Rs 680.35 so far during the day. The stock had hit a record high of Rs 1,380 on 16 September 2016. The stock had hit a 52-week low of Rs 533.10 on 29 May 2017.

The stock has dropped 8.62% in three sessions to its current price, from a close of Rs 754.80 on 19 July 2017.

The stock had outperformed the market over the past one month till 21 July 2017, gaining 11.88% compared with 2.38% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 14.21% as against Sensex's 9.07% rise. The scrip had, however, underperformed the market in past one year, falling 39.05% as against Sensex's 15.58% rise.

The large-cap company has equity capital of Rs 53.09 crore. Face value per share is Rs 2.

Divi's Laboratories' revenue in Q1 has been impacted due to the time required for setting up protocols and procedures for release of export shipments as stipulated in the import alert by the US drug regulator. This has since been established and shipments for the exempted products are being done as per the protocols.

Divi's Laboratories is primarily engaged in the manufacture of active pharmaceutical ingredients (APIs) & intermediates for generics; custom synthesis of API's and advanced intermediates for discovery compounds for pharma giants; building blocks for peptides; building blocks for nucleotides; carotenoids; and chiral ligands.

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