Divis Lab spurts after strong Q1 performance

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Divi's Laboratories surged 15% to Rs 3201.85 after the company's consolidated net profit jumped 81% to Rs 492 crore on a 47% increase in total income to Rs 1748 crore in Q1 FY21 over Q1 FY20.

Profit before tax in Q1 June 2020 stood at Rs 661 crore, up by 77% from Rs 373 crore in Q1 June 2019. Forex gain for the current quarter amounted to Rs 5 crore as against a loss of Rs 6 crore during the corresponding quarter of the last year.

Divi's Lab said that the company has been able to have near normal operations during the quarter and there was minimal impact due to COVID-19 pandemic.

It added that while a significant part of the ongoing capex programs has been completed during the last financial year, due to the COVID-19 pandemic, there has been delay in implementing the balance part of the capex programs taken up by the company due to non-availability of workmen of some contractors implementing the projects.

The company has seen improvement subsequently in terms of some of the technicians of contractors reporting for duty and materials arriving at site. It expects to complete the capex programs by second half of the financial year.

Divis Laboratories is a manufacturer of APIs (active pharmaceuticals ingredients), intermediates and registered starting materials offering high quality products to over 95 countries.

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